Jim Cramer's Mad Money In-Depth 3/3/08: Cramer's Hot Commodities

Includes: AEM, AUY, CHK, DE, MON, MOS, NTR
by: Miriam Metzinger

Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Monday March 3. Click on a stock ticker for more analysis:

Agrium (AGU), Deere (NYSE:DE), Monsanto (NYSE:MON), Mosaic (NYSE:MOS), Potash (POT)

Cramer made several predictions which he referred to as his “Sweet Sixteen” forecasts; He sees gold going to $1,600 an ounce, wheat and corn reaching $16 a bushel and natural gas hitting $16. His Sweet Sixteen predictions touched on the commodities market, a place Cramer thinks is the safest and most profitable in the current economic climate. He reiterated his bullishness on his Fab Five agriculture stocks, Agrium (AGU), Deere (DE), Monsanto (MON), Mosaic (MOS) and Potash (POT), especially amid global food shortages and the U.S.’s obsession with ethanol. Although he likes all of them, Cramer singled out POT at $157 down 11% from its high. The company is expected to grow 107% in the coming year, and Cramer thinks POT could reach $383 a share. In addition, the company trades at a mere 22 times earnings and has an aggressive buyback program.

Agnico-Eagle Mines (NYSE:AEM), Yamana (NYSE:AUY)

Although Cramer rarely discusses a stock two shows in a row, he made an exception in the case with AEM, which produces gold at a low cost exceeded only by Cramer’s perennial gold pick, Yamana. He likes the sector in general because it is so overvalued; the gold sector has a market cap of only $200 billion while Exxon alone is valued at $400 billion. Cramer says this means gold stocks should be selling at twice their current prices. He likes AEM in particular because the company is opening five new mines which will quintuple production.

Chesapeake Energy (NYSE:CHK)

When it comes to natural gas, Cramer revisited his old favorite CHK, the largest producer of the fuel in the U.S. He likes CHK in particular for its production growth, which is expected to reach 21% in 2008, and its strong insider buying. “There is only one reason why executives buy stock in their own company," Cramer said, "and that's to make money." Cramer recommended viewers “piggy back” off of CEO, Aubrey McClendon, who recently purchased 400,000 shares.

Special Guest: Pennsylvania Governor, Ed Rendell

Pennsylvania has four to five times fewer foreclosures than its neighbors, and Governor Rendell discussed preventative measures which forestalled the crisis in his state. As early as 2003, he hired additional staff to keep an eye on the lending industry and sponsored counseling for more than 12,000 low income homeowners. The state also provided mortgage education and when necessary, refinanced loans at reasonable rates. Cramer liked Rendell’s home loan assistance program, and recommended a similar program at the federal level.

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