Recap of Jim Cramer's radio show on Wednesday June 28. Click on a stock ticker for more analysis:
Note: Aaron Task will be filling in for Cramer this week.
Talking Commodities: U.S. Global Investors Global Resource Fund (MUTF:PSPFX), Advantage Energy (NYSE:AAV) and PrimeWest Energy (NASDAQ:PWI) - Aaron Task disagrees with the widespread belief that commodities are dead. After a large rise in these stocks from January until Mid-May, the Fed meeting on May 10th and the Bank of Japan's decision to pull liquidity out of the system sent commodities down. However, the development of infrastructure in BRIC countries, which Task compares to the skyrocketing growth that occured in the 1950s in the US, will make commodities a bull market for the long term. Chip Hanlon, contributor to RealMoney.com and president of Delta Global Advisors, joined Task on the show, and commented that commodities are no longer so simple, since they do not rise and fall together, and it is difficult to generalize about the entire sector. Hanlon recommends oil stocks, since fuel is a large expense for mining companies, and likes the energy companies, AAV and PWI. Task picks PSPFX as a top performer which allows investors to get into commodities without purchasing individual stocks.
Alcan (AL (defunct)): Task follows the recommendation of John Hills, a metals analyst at Citigroup, that this company is a good mining play. Hanlon is cautious, however, because of the cost of production involved in mining.
Phelps Dodge (PD): Task believes this copper stock, which has recently acquired Inco (NYSE:N) and Falconbridge (FAL) is solid and has a diversified portfolio. Hanlon comments that companies take a while to incorporate their new acquisitions, and that there is no need to rush into this stock.
Finisar (NASDAQ:FNSR): Task likes this momentum stock, but warns that it is speculative and would get out if it falls under $3.
Freeport-McMoRan (NYSE:FCX): This company is the world's largest copper producer and has a huge gold mine in Indonesia. However, Task is worried about political instability. Hanlon, however, said this is a good stock to buy for those who want to invest in both copper and gold.
More: Cramer's latest stock picks, including: Mad Money Recap, Lightening Round, Stop Trading and his Radio Show.