"No area has attracted more interest than China since the beginning of 'Mad Money,'" Jim Cramer told viewers on Wednesday. Cramer said he believes that China is a "nasty" place to invest in because it has a government that Cramer doesn't trust. But because it's the week of his 500th show, despite his reticence to invest there, Cramer said he's giving his viewers what they want. So, on this night only, kicking and screaming, Cramer is telling people how to play China so they do it right. Cramer, who dedicated Tuesday's entire show to big pharma, said that tonight, he's going to give people a double dose of Chinese stocks: the stable, reliable variety and the risky, exciting and speculative names. But he stressed that market players must wait for a pullback before buying any of these stocks.
Mad MailIn his "Mad Mail" segment, Cramer told a viewer that since the Fed has decided not to ease rates, other than a couple of select retail names, such as GameStop ( GME), Sears Holdings ( SHLD) (which he owns for his charitable trust) and maybe PetSmart ( PETM), retail is not for him right now. Responding to another mailer, Cramer said he considers Yamana Gold ( AUY) "the only gold company that is not a speculation" that he would recommend on his show.
Am I Diversified?In his "Am I Diversified?" segment, Cramer's first caller said he owned the following five stocks: Boeing ( BA), Google ( GOOG - Get Report),GameStop, Coca-Cola ( KO) and Toyota Motor ( TM), a stock Cramer owns for his charitable trust. Cramer called the portfolio "diversificated." The second player called out the following five names: Dell ( DELL), Apple ( AAPL),Toyota Motor, Halliburton ( HAL - Get Report) andSears, the latter three which Cramer owns for his
On SpecSpeculative plays are risky by nature, but buying a speculative stock in China is even riskier than buying the normal speculative stock, Cramer told viewers. He called out two Chinese advertising stocks as his top speculative picks in the country: Focus Media and Baidu.com ( BIDU - Get Report). Specializing in LCD displays, built-in displays and digital billboards, Focus Media is the largest display-advertising company in the country. Moreover, it has "major momentum" and "consistently" raises its numbers, Cramer said. Meanwhile, Baidu is the only company "beating Google at its own game," he said. The company's market cap is 1/125th of Google's, which is "ridiculously low," Cramer added. Baidu's price may seem high because it's had a huge run and just raised guidance, but its potential for growth means it could be still be "incredibly undervalued." That said, Cramer let viewers know that he wouldn't be buying either of these two himself for any reason.
Lightning RoundCramer was bullish on Great Lakes Dredge & Dock ( GLDD), Gerdau AmeriSteel , Allegheny Technologies ( ATI), Reliance Steel ( RS), Halliburton ( HAL - Get Report), Air Products & Chemicals ( APD), Celgene ( CELG), PetSmart ( PETM), GameStop ( GME), Sears Holdings ( SHLD), optionsXpress , Jack in the Box , Chipotle Mexican Grill ( CMG), Steel Dynamics ( STLD) and Dynegy ( DYN). Cramer was bearish on Allis-Chalmers Energy , Aventine Renewable Energy Warner Music Group , Seagate Technology ( STX) and CMGI . For more of Cramer's insights during the Lightning Round,
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