On tonight’s MAD MONEY on CNBC Cramer discussed listening about how so many investors don’t want to be 100% invested in America. Even though America is 100% pro-corporations, Cramer said he has increased his foreign exposure tolerance to up to 20% from 10%. He has tonight the BEST 4 FOREIGN stocks. This will get you in emerging markets and away from the Fed and rates.
Cramer first reviewed in Brazil as his 4th best international pick: He likes CVRD-Companhia Vale do Rio Doce (RIO) which he likes better than Rio Tinto (RTP). He likes that it bought Inco in a robbed deal. It used to be a provincial iron ore company but is now diversified and global, and is thought of as a lowest cost producer that is essentially a Canadian-Latin player and has huge reserves. He thinks the stock is dirt cheap and the investment expectations are too low for the forward year. Now that Brazil is cutting corporate taxes, he likes it even better. The country is also allowing the stripping of the rain forest to stabilize the country and make it energy self-sufficient, and he reminds you the show is about money more than social issues.
As a reminder, Cramer has picked this one before and please note the $74 Billion market cap. RIO closed up 1.6% at $30.62 in normal trading and shares rose 1.5% to $31.10 in after-hours trading.
Jon C. Ogg
January 22, 2007
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