Recap of Jim Cramer’s comments on Wall Street Confidential, Thursday February 15. Click on a stock ticker for more analysis:
Agrium (NYSE:AGU), Agco (NYSE:AG), Deere (NYSE:DE) and Archer Daniels Midland (NYSE:ADM), Bunge (NYSE:BG), Monsanto (NYSE:MON), Landec (NASDAQ:LNDC), DuPont (NYSE:DD), VeraSun (VSE), Baker Hughes (NYSE:BHI), Transocean (NYSE:RIG)
The "new OPEC" is comprised of companies which are involved in corn production for ethanol, and Cramer says that names such as AGU, AG, DE, ADM, and have "tremendous visibility" which means "you can pile in and not have to sell." He predicts the visibility continuing until 2009 and 2010, since both Democrats and Republicans are interested in raising tariffs to keep ethanol out of other countries, but he feels that the agricultural sector may have problems with capacity. Cramer also likes BG, MON, LNDC, and DD which are "long-term winners," and, unlike VeraSun, do not actually produce ethanol. He says that BHI is a "poorly executed company that is taking down the whole group." Cramer says that RIG is making too much cash to be public, and is surprised that it has not received an offer from a private equity firm. He does not think RIG will suffer the same fate as BHI because "Transocean is not levered to the Gulf; it is levered to the rest of the world, and that's what's important."
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