Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Tuesday June 27. Click on a stock ticker for more analysis:
Note: This program is a compilation of picks and comments from past shows. There is no 'Lightning Round'.
Cramer selected these stocks as the "best of breed" companies in Japan. However, he suggests doing homework before investing, since many of these stocks are exporters and can be affected by the rate of the yen.
1. Mitsubishi UFJ (NYSE:MTU): Cramer compares the potential peformance MTU to Citibank (NYSE:C), which made an incredible comeback in 1991, when it jumped suddenly from the single to the double digits. Although MTU could be hurt by Japanese interest rates, Cramer recommnends the stock as a long-term play.
2. Kirin Brewery (OTCPK:KNBWY): Although Cramer is bearish on American beer, he is fond of Kirin, because it has a unique product: soy-based beer that bypasses Japan's malt tax. Sales have tripled since the stock was introduced in 2005, and it has raised its guidance by 50%. Kirin also has soft-drinks and a biotech subsidiary. Cramer suggests doing research before buying this stock, because the Japanese Parliament is considering legislation that will include soy-based beer in its malt tax.
3&4.Toyota Motor (NYSE:TM) and Honda Motor (NYSE:HMC): If the yen "softens up" these stocks will be good buys. Honda reported a good quarter, but Cramer prefers Toyota, which has hybrids. These are smart companies, according to Cramer, because they are selling fuel-efficient cars while many American companies are still putting out "gas guzzlers."
5. Kubota (KUB): The success of this stock depends on the weakness of the yen, acccording to Cramer, and this agricultural and construction equipment manufacturer will sell well in the US as long as the yen stays down. Kubota faces some competition in its medium-sized tractor division, and Cramer suggests looking at where the currency is going before buying Kubota.
6. Matsushita Electric Industrial (MC-OLD): This company is becoming a major player in big-screen plasma TVs, and Cramer prefers this stock at $22 to Corning (NYSE:GLW) at $24. MC expects to have 40% of the market by 2010, is out-producing its competitors, and intends to buy a $1.57 billion plasma TV plant in Japan. This is a long-term stock, says Cramer, because tech is down.
Vietnamese Play: Australia & New Zealand Banking Group (ANZ)
Cramer cites Intel's (NASDAQ:INTC) bid to build a plant in Ho Chi Minh city and the fact that Vietnamese economy grew 8% in 2005 as evidence that the country is going capitalist. Although he believes investing directly in Vietnam is too risky, Cramer suggests bank stocks as a better option. Cramer picks ANZ, because it owns 10% of a top Vietnamese bank.
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