Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Monday April 2. Click on a stock ticker for more analysis:
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With the world focused on the standoff with Iran, Cramer discussed his "Iran Awry" portfolio which would protect investors in case of a crisis. Since higher oil prices lead to recession, Cramer recommends defensive stocks such as drugs, and picks ABT since it consistently reaches its 52-week high, grows at 14% and sells at only 16 times earnings. Cramer also likes KMP, an oil company which won't get cut off by Iran, which yields a high 6.3% dividend. KMP also has a large natual gas pipe, and Cramer notes that "distribution for natural gas will be boosted if Iran does something nutty." He likes the fact that KMP distributes profits. Since gold "soars" when there is military conflict, Cramer suggests his favorite gold, AUY which is growing while other gold companies are stalled. Although he has been behind AUY for a long time, Cramer feels it has more room to run. Cramer would put 25% of his budget in each stock and 25% into cash to buy good stocks which will get hit if there is further conflict with Iran. In this scenario, he would not purchase a stock with a yield less than 5%.
Related: Vitaliy N. Katsenelson bids farewell to fully valued ABT.
Cramer thinks the deal that will allow Kohlberg Kravis Roberts to purchase FDC at $34 a share will benefit MA which "should easily be worth $130 to $140 a share. Mastercard is masquerading as a $106 stock." While FDC is not well run, Cramer thinks KKR's real plan is to "place a secular bet on plastic... and the ultimate plastic play is Mastercard." While MA has gone up, Cramer says it should never have been priced so low, its merchant processing business is "an irreplaceable franchise," it is a strong China and Latin America play, and has "true organic revenue and profit growth."
Related: Notable Calls on MA's impressive story.
A caller asked if MSFT's CEO, Steve Ballmer, should be the next inductee to Cramer's Wall of Shame, and Cramer responded that while MSFT is a "challenged situation," Ballmer is doing his best and the entire industry has peaked. He told another mailer FRK is going to trade with VMC; " I think Vulcan Materials is going to keep going higher, because there are a lot of roads that need aggregate."
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