Jim Cramer's Mad Money Stock Recap Feb. 14
#3 Row Pick: Caterpillar (NYSE: CAT - News)
Cramer is not optimistic about the future of the emerging economies in Brazil, Russia, India and China or BRIC countries and prefers companies that deal with ROW or the Rest of the World. Investors flocked to BRIC stocks because of the short-term rise in interest rates and because housing "fell off a cliff." Instead, Cramer chose several industrial stocks which do around half of their business with ROW. His first pick was CAT, with 48% of its sales and over half of its manufacturing plants overseas. 'It is cyclical, but not totally levered to the U.S.," Cramer said. "It is the year people will recognize that Caterpillar is more than a housing play."
#2 ROW Pick: Dupont (NYSE: DD - News)
"Big Daddy chemical company" Dupont does 65% of its business in ROW and, as a large consumer of oil, will benefit from low oil prices, according to Cramer, who adds that its agricultural growth makes it part of the "global agricultural oligopoly." Cramer cautions against owning industrials that do not have strong international exposure, at least until the Fed begins cutting rates, and thinks DD is a strong buy.
#1 ROW Pick: United Technologies (NYSE: UTX - News), Whirlpool (NYSE: WHR - News), Emulex (NYSE: ELX - News)
Cramer said that he doesn't want to make the same mistake twice and be bearish on UTX again, since the stock is in the house of pleasure after he sold it. He notes that 60% of UTX's revenues come from overseas, it has "great management" and a "phenomenal" aerospace business that creates international growth. The best decision the company has made, according to Cramer, was to expand overseas, and he adds that, to avoid being "held hostage by the Fed," investors should move away from domestic stocks such as Whirlpool and look at companies like ELX which are not leveraged to the U.S.
Mad Mail: Viacom (NYSE: VIA-B - News), Microsoft (NasdaqGS: MSFT)
Cramer says that he is not disappointed that Viacom fired 250 MTV employees because the company was "run like a country club," and hopes that the Viacom will once again report "decent, profitable quarters." Concerning Microsoft's special dividend and buyback, Cramer doesn't think that these strategies will effect its price much, since MSFT is a large company.is a large company.
Cramer is not optimistic about the future of the emerging economies in Brazil, Russia, India and China or BRIC countries and prefers companies that deal with ROW or the Rest of the World. Investors flocked to BRIC stocks because of the short-term rise in interest rates and because housing "fell off a cliff." Instead, Cramer chose several industrial stocks which do around half of their business with ROW. His first pick was CAT, with 48% of its sales and over half of its manufacturing plants overseas. 'It is cyclical, but not totally levered to the U.S.," Cramer said. "It is the year people will recognize that Caterpillar is more than a housing play."
#2 ROW Pick: Dupont (NYSE: DD - News)
"Big Daddy chemical company" Dupont does 65% of its business in ROW and, as a large consumer of oil, will benefit from low oil prices, according to Cramer, who adds that its agricultural growth makes it part of the "global agricultural oligopoly." Cramer cautions against owning industrials that do not have strong international exposure, at least until the Fed begins cutting rates, and thinks DD is a strong buy.
#1 ROW Pick: United Technologies (NYSE: UTX - News), Whirlpool (NYSE: WHR - News), Emulex (NYSE: ELX - News)
Cramer said that he doesn't want to make the same mistake twice and be bearish on UTX again, since the stock is in the house of pleasure after he sold it. He notes that 60% of UTX's revenues come from overseas, it has "great management" and a "phenomenal" aerospace business that creates international growth. The best decision the company has made, according to Cramer, was to expand overseas, and he adds that, to avoid being "held hostage by the Fed," investors should move away from domestic stocks such as Whirlpool and look at companies like ELX which are not leveraged to the U.S.
Mad Mail: Viacom (NYSE: VIA-B - News), Microsoft (NasdaqGS: MSFT)
Cramer says that he is not disappointed that Viacom fired 250 MTV employees because the company was "run like a country club," and hopes that the Viacom will once again report "decent, profitable quarters." Concerning Microsoft's special dividend and buyback, Cramer doesn't think that these strategies will effect its price much, since MSFT is a large company.is a large company.
Published By SeekingAlpha
Labels: CAT, DD, ELX, Jim Cramer, Mad Money, MSFT, UTX, VIA, WHR
posted by Stock Administrator @ 7:23 AM
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