Cramer's 'Mad Money' Recap: Bank on Banco Bradesco

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Brazil's banks should offer solace to investors who are turned off by America's weak consumers, Jim Cramer told viewers of his "Mad Money" TV show on Tuesday.

Calling Brazil's growing economy "investor nirvana," Cramer pointed out that Latin America provides an important market to American companies that are suffering at home.

Whirlpool ( WHR) and Colgate ( CL) can both attribute today's earnings success to Latin American exposure, Cramer said.

Brazil is particularly good for investors because its consumers are growing richer. The Fed also has a role in a Brazil play. Lower interest rates are great for Brazil's banks, because "credit cards and mortgages are a recent discovery" for the country," Cramer said. Lower interest rates in America mean the Brazilian market will open up as well.

Additionally, global money managers want to buy banks, but takeover targets are scarce. Brazil offers two possible candidates: Banco Bradesco ( BBD) and Banco Itau ( ITU).

Banco Bradesco is the best way to play the Brazilian utopia, Cramer said. BBD has five advantages over ITU.

First, BBD is the larger of the two banks. Second, it has fewer bad loans as a percentage of total loans. Third, BBD is the market leader in asset management insurance and pension plans. Fourth, BBD has 20% of its ATMs and branches in the wealthier northern half of Brazil compared to ITU's 6%.

And finally, BBD trades at 14 times earnings, whereas ITU trades at 16 times earnings. If BBD's price-over-earnings ratio were to rise to match ITU, the share price would rise from $32 to $40.

Banco Bradesco handily beats Banco Itau as a play on Brazil's emerging market, Cramer said.

Corning a Value Play

An upcoming FCC ruling on cable companies' relationships with building developers and owners should benefit Corning ( GLW), Cramer said. Additionally, the company has innovated bendable optical fiber, a development that should significantly reduce the cost of installing cable networks in apartments and apartment buildings, Cramer said.

Furthermore, Corning has issued a conservative forecast in a recent earnings report. Cramer believes that means the company is playing the underpromise, overdeliver game. Compared with other companies in its sector, the company is tremendously undervalued, Cramer said. Investors looking to make a play on LCD companies and fiber optics should take a look at this company.

Tesoro Treasure

Cramer said investor Kirk Kerkorian's recent interest in Tesoro ( TSO) could help lift the stocks of other refiners, such as Valero Energy ( VLO) ( SUN), Sunoco ( SUN) and Marathon Oil ( MRO). Of the three, he prefers Marathon.

Lightning Round

Cramer was bullish on Vodafone ( VOD), Annaly Capital Management ( NLY), Perry Ellis International ( PERY), NexCen Brands ( NEXC), Phillips-Van Heusen ( PVH), Synchronoss Technologies ( SNCR), ValueClick ( VCLK), Apple ( AAPL), Google ( GOOG), Research In Motion ( RIMM), Furmanite Corporation ( FRM), Foster Wheeler ( FWLT), Altria ( MO) and Colgate-Palmolive ( CL).

Cramer was bearish on J2 Global Communications ( JCOM) , 3SBio ( SSRX), Vimpel-Communications ( VIP), E-House (China) Holdings ( EJ), ConAgra Foods ( CAG), Synaptics ( SYNA) and Procter & Gamble ( PG).

Sudden Death

During the Sudden Death round, Cramer was bullish on Research In Motion ( RIMM) and Diana Shipping ( DSX).

He was bearish on Palm ( PALM) and Coach ( COH).

Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by clicking here.

For more of Cramer's insights during the Lightning Round, click here .

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money."

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