24/7 Wall St. » NAT

Baltic Dry: The Death Of An Index (SEA, DRYS, SFL, NAT)

Administrator — Thu, 02 Feb 2012 18:20:35 +0000

Just what does a cratering Baltic Dry Index mean? Frankly, it looks and acts as though it is signaling the next recession is here already rather than signaling that it is coming. That flies in the face of many current trends, but perhaps it is the woes of Europe. After all, Belgium is the first country so far to have two negative GDP quarters and the other Eurozone nations are somehow claiming that they will escape a 2012 recession. There is a lot more to the story.

The Baltic Dry Index is not just at a year low. It is back to lows at the peak of the recession 2007 to 2009. It is hard to imagine. One of the major issues may simply be high excess in capacity. Shipping may have run into the same problems as the worlds manufacturing lines. There may just be too much supply now versus demand.

Since the recession, boats have continued being built. The world just may be awash in capacity. It is surprising but the shipping stocks are actually holding up well with the stock market rather than tanking with tanker day rates. Here is how some of the more active ship stocks look, even though not all are exactly pertinent or covered under the Baltic Dry Index:

The Guggenheim Shipping ETF (NYSE: SEA) is up 0.7% today while its 52-week trading range is $13.37 to $28.21. If you tally up the last four dividend payment this one has a yield of about 5.7% but you have to keep in mind that three-quarters of that dividend is from the June quarterly payment last year.

DryShips Inc. (NASDAQ: DRYS) is down 0.5% at $2.18 and its 52-week range is $1.75 to $5.19.

Ship Finance International Limited (NYSE: SFL) is up a penny at $11.56 but its 52-week range is $8.62 to $21.15. Its dividend is well above 10% now.

Nordic American Tankers Limited (NYSE: NAT) is down five cents at $13.95 against a 52-week range of $11.58 to $26.18. Its dividend is now over 8%.

Is it possible that not all of the old ships in the world are being sent to India and Sri Lanka for scrapping any longer now that India has slowed down its blistering pace? There are many reports calling it a dead index as well. Stay tuned. Imagine how well shipping stocks might perform when the underlying price index is cooperating.

See the index chart for the last five years below….

JON C. OGG

Filed under: 24/7 Wall St. Wire, ADR, Economy, International Markets, Transports Tagged: DRYS, NAT, SEA, SFL

Secondary Stock Offering Floodgates Open Wide (ARCC, SAVE, AONE, SQNM, BWP, HTGC, MMLP, ZIOP, FRAN, NAT)

Administrator — Fri, 20 Jan 2012 16:50:54 +0000

If you watch underwritings in stocks, it would be literally impossible not to pay attention to the waves of secondary stock offerings from companies in the last 48 hours. Some of the key secondary offerings that have prices and been proposed are as follows: Ares Capital Corporation (NASDAQ: ARCC), Spirit Airlines, Inc. (NASDAQ: SAVE), A123 Systems, Inc. (NASDAQ: AONE), Sequenom Inc. (NASDAQ: SQNM), Boardwalk Pipeline Partners LP (NYSE: BWP), Hercules Technology Growth Capital Inc. (NASDAQ: HTGC), Martin Midstream Partners LP (NASDAQ: MMLP), ZIOPHARM Oncology, Inc. (NASDAQ: ZIOP), Francesca’s Holdings Corporation (NASDAQ: FRAN), and Nordic American Tankers Limited (NYSE: NAT).

Here is a link to each summary with much more detail from the wire:

Ares Secondary (ARCC) hits shares
Spirit Airlines (SAVE) insiders unloading stock
A123 (AONE) has a direct share sale
Sequenom (SQNM) needs capital
Boardwalk Pipeline (BWP) Raising Capital
Hercules (HTGC) raising new investment capital
Martin Midstream Partners (MMLP) buying analyst coverage
ZIOPHARM (ZIOP) raising cash
Francesca’s (FRAN) shares held up
Nordic American Tankers (NAT) sells shares for more boat buying

What is funny is that this list is ten companies and it still leaves a few fresh filings out.

JON C. OGG

Filed under: Insider Activity, IPOs, Secondary Offering, Shareholder Issues Tagged: AONE, ARCC, BWP, FRAN, HTGC, MMLP, NAT, SAVE, SQNM, ZIOP

Another Shipping Bankruptcy Filing Could Signal More on the Way (GMR, ONAVQ, TNK, OSG, NAT, FRO, NM, DRYS)

Paul Ausick — Fri, 18 Nov 2011 14:59:44 +0000

An over-supply of product leading to a steep drop in price has claimed another victim. No, this is not a story about a solar PV maker, but about shipping, where ships that were ordered in 2007 and 2008 have been hitting the water in big numbers this year at the same time that the global economy continues to get weaker.

General Maritime Corp. (NYSE: GMR) filed for bankruptcy protection yesterday citing low shipping rates for its fleet of 33 crude oil carriers and the company’s inability to comply with its debt covenants. Shipper Omega Navigation Enterprises Inc. (OTC: ONAVQ) filed for bankruptcy in July, and there is good reason to be concerned about other shippers like Teekay Tankers Ltd. (NYSE: TNK), Overseas Shipholding Group Inc. (NYSE: OSG), Nordic American Tanker Shipping Ltd. (NYSE: NAT), and Frontline Ltd. (NYSE: FRO).

Tanker rates are far below break-even rates and could stay there throughout 2012. The day rate for a very-large crude carrier (VLCC) is currently around $7,800, far below a break-even rate of around $30,000. To combat the low rates, some ship owners are considering selling their ships for scrap value. According to a report at Bloomberg, the cost to buy a 15-year old tanker is currently $23.5 million, while the scrap value of such a vessel is $17.25 million. That’s the narrowest difference in at least five years.

As much as 5% of the world’s oil tanker fleet could be scrapped in the next 18 months, but that would only raise rates to an estimated $12,817 by 2013, still less than half what is needed to hit a break-even rate. When profitability will return is anyone’s guess.

General Maritime and Omega Navigation depended heavily on the spot market for cargoes, which is a good position when prices are high, but a bad position when prices are low. Teekay has said that it has half its fleet booked through next summer, and could cover its costs even if the rest of the fleet remain idle. But in its third quarter earnings report, the company said it lost $291.2 million on fewer shipments and lower day rates. If there was any good news there, it was that Teekay didn’t lose as much as analysts had expected.

Tanker owners aren’t the only ones now struggling. Dry bulk shipper DryShips Inc. (NASDAQ: DRYS) actually beat estimates in its third quarter, primarily on the strength of the company’s move into offshore drilling vessels, not its shipping business. The company’s posted EPS loss of -$0.58 was better than the consensus estimate of -$0.61.

Navios Maritime Holdings Inc. (NYSE: NM), another dry bulk shipper, reported better-than-expected earnings yesterday, but net income was down year-over-year on increases in finance costs and higher depreciation/amortization charges. The company has said it is seeking a partner bank to acquire assets of distressed shippers at fire-sale prices. Frontline has also made the same claim.

Shares of Teekay Tankers are up about 1.4% in the first half hour of trading this morning, at $4.59, in a 52-week range of $3.48-$12.99. Navios shares are up about 0.8%, at $3.81, in a 52-week range of $2.88-$5.99. Frontline shares are down about -0.4%, at $5.72, in a 52-week range of $3.88-$28.93. DryShips is up nearly 0.8%, at $2.58 in a 52-week range of $1.75-$6.44.

Paul Ausick

Filed under: Bankruptcy, Oil & Gas, Transports Tagged: DRYS, FRO, GMR, NAT, NM, ONAVQ, OSG, TNK

24/7 Wall St. Closing Bell (K, ALU, TOL, PAY, YRCW, GRPN, TESO, BSFT, CCJ,CDE,KWK, NAT, FRPT, ADPI, TKLC, OVTI, DMND)

Paul Ausick — Mon, 07 Nov 2011 21:09:51 +0000

Markets opened up a bit this morning, but by 10:00 a.m. equities had turned back down, with the DJIA sliding down nearly -200 points before rallying back to its opening mark in the early afternoon. Shares simply couldn’t get any traction in any sector, with heath care stocks losing the least. Crude oil rose to just above $95/barrel, and the firing of two California state oil & gas officials by the governor has raised hopes for speedier permitting in that state, where an estimated trove of 15 billion barrels of shale oil is at stake. In the last half hour of trading, equities rebounded on their way to a gain for the day.

The unofficial closing bells put the DJIA up more than 85 points to 12,068.39 (0.71%), the NASDAQ rose more than 9 points (0.34%) to 2,695.25, and the S&P 500 rose 0.63% or nearly 8 points to 1,261.12.

There were several analyst upgrades and downgrades today, including Kellogg Co. (NYSE: K) cut to ‘market perform’ at William Blair. Other changes included Alcatel-Lucent SA cut to ‘sell’ at Citigroup; Toll Brothers, Inc. (NYSE: TOL) raised to ‘buy’ at Citigroup; VeriFone Systems Inc. (NYSE: PAY) started at ‘buy’ at Citigroupl; YRC Worldwide, Inc. (NASDAQ: YRCW) maintained at ‘underperform’ with a price target of $0.05 at Credit Suisse; and Groupon Inc. (NASDAQ: GRPN) started at ‘buy’ at Benchmark.

Here are today’s big post-earnings news reactions with prices during the last half-hour of trading: Tesco Corp. (NASDAQ: TESO) is down about -18%, at $13.34; BroadSoft, Inc. (NASDAQ: BSFT) is down less than -0.5%%, at $36.28; Cameco Corp. (NYSE: CCJ) is down nearly -7%, at $20.00; Coeur d’Alene Mines Corp. (NYSE: CDE) is up nearly 8%, at $29.42; Quicksilver Resources Inc. (NYSE: KWK) is down more than -9%, at $7.62; and Nordic American Tankers Ltd. (NYSE: NAT) is down nearly -4%, at $13.64.

Several other standouts from today are as follows…

Force Protection, Inc. (NASDAQ: FRPT) is up more than 30%, at $5.50. The armored truck maker is being acquired by General Dynamics Corp. (NYSE: GD for $5.52/share in a deal worth $360 million.

American Dental Partners, Inc. (NASDAQ: ADPI) is up nearly 79%, to $18.57. The company is being acquired by a private equity firm for $317 million, or $19/share, an 83% premium to Friday’s closing price.

Tekelec (NASDAQ: TKLC) is up more than 13%, at $11.20. The telecom equipment maker is being acquired by a private equity firm for about $760 million.

OmniVision Technologies, Inc. (NASDAQ: OVTI) is down nearly -18%, at $14.23. The company revised its outlook to include a sharp drop in fourth-quarter revenues. Shares are down about -50% since the beginning of the calendar year.

Diamond Foods, Inc. (NASDAQ: DMND) is down about -15.5%, at $39.21, after posting a new 52-week low of $38.45 earlier in the day. The company’s stock continues to get beaten up due to a delay in its acquisition of the Pringles business from Proctor & Gamble (NYSE: PG) and an investigation into payments to walnut growers.

Stay tuned for Tuesday. Philadelphia Federal Reserve president Charles Plosser is giving a speech in the morning and Minneapolis Federal Reserve president Narayana Kocherlakota gives a speech in the afternoon. We have noted the following events (all times Eastern):

7:45 a.m. – International Council of Shopping Centers-Goldman Sachs same-store sales
8:55 a.m. – Redbook weekly report on retail sales
1:00 p.m. – US Treasury 3-year note auction

Paul Ausick

Filed under: HI/LOW, Market Close Tagged: ADPI, ALU, BSFT, CCJ, CDE, DMND, FRPT, GRPN, K, KWK, NAT, OVTI, PAY, TESO, TKLC, TOL, YRCW

More Woes for Shippers (GMR, ONAVQ, TNK, OSG, NAT, FRO)

247wallst — Mon, 05 Sep 2011 16:02:19 +0000

No matter what kind of cargo a shipping company moves, that company is likely to be in some financial distress. Rates for moving containers, dry bulk, and oil are all way down as the global economy continues its snail-like recovery.

Oil carrier General Maritime Corp. (NYSE: GMR) recently received a debt rating from Moody’s that puts the company’s debt at just one notch above default. Omega Navigation (OTC: ONAVQ) has already filed for bankruptcy, as have several other smaller tanker operators. The big problem is over-supply of vessels. Other tanker outfits that will be affected include Teekay Tankers Ltd. (NYSE: TNK), Overseas Shipholding Group Inc. (NYSE: OSG), Nordic American Tanker Shipping Ltd. (NYSE: NAT), and Frontline Ltd. (NYSE: FRO).

We noted last week the over-supply problems for container ships. Shippers ordered new vessels in 2007 and 2008, before the global economy went into paralysis. Now, those ships are being delivered and the added capacity is killing day rates. The container fleet has grown 17% since 2007 and new orders still to be delivered will increase the fleet size by another 28%. The dry bulk carrier fleet that hauls coal and iron ore and similar commodities is set to increase capacity by 36%. The very-large crude carrier fleet could expand by 14% this year alone.

In order to break even, the tankers must charge a day rate of nearly $30,000. The average short-term spot rate from the Persian Gulf to the Far East is now $1,795. Shippers try to make up for that by slow-steaming, which keeps the vessel on the water for a longer time, and by spending more time in port.

Shippers are burning through cash a a ferocious rate as they wait for rates to turn up, but that is not expected to happen for another year or more. Tanker outfit Teekay Tankers had less than half as much cash at the end of 2010 as it did at the end of 2008. Overseas Shipholding burned through nearly half its cash in 2010. Nordic American also saw its cash fall by nearly half in 2010.

Companies with relatively high charter numbers may be better able to weather the storm. Teekay Tankers claims that it has more than half its fleet chartered for the next 12 months, enough to cover all the company’s costs even if the rest of its ships are idled.

The world’s largest tanker operator, Frontline, claims to be on the lookout for buying opportunities as the smaller outfits collapse. With more than $300 million in cash available at the end of last year, the company is positioned to make good on that claim.

The demise of Omega and the possible collapse of General Maritime are a direct consequence of their dependence on the spot tanker market. Spot rates can be much higher than charter rates — and they can also be much lower. These two, and the other small carriers who bet on high spot rates, are headed for some very rough sailing.

Paul Ausick

Filed under: Turnarounds Tagged: FRO, GMR, NAT, ONAVQ, OSG, TNK

Shipping Companies and the Japan Effect (DRYS, DSX, GNK, AMKBF, DAC, SSW, FRO, NAT, TK, TGP, GLNG, SEA)

Administrator — Mon, 21 Mar 2011 14:54:52 +0000

As Japan recovers from the devastating earthquake and its aftermath, the country will depend heavily on importing raw materials into the country and exporting finished goods. There are a number of publicly traded shipping companies that could see a bump in revenues as transport to and from Japan picks up.

One type of shipper that could benefit fairly quickly is dry bulk, the massive carriers that haul coal, iron ore, and other raw materials. The carriers include DryShips, Inc. (NASDAQ: DRYS), Diana Shipping Inc. (NYSE: DSX), and Genco Shipping & Trade Ltd. (NYSE: GNK). The Baltic Dry Index, BDI, is recovering slightly from a very low 1,064. As coal is required in Japan to generate electricity no longer available from the damaged nuclear reactors, dry bulk rates from Australia and from the west coast of the US could rise. The rises will be limited by the amount of coal Japan requires and the amount that dry bulk terminals can handle. Terminals and coal shippers on the east coast of the US could also benefit as coal cargoes bound for Europe could be diverted to Japan and additional ships put into service.

Container shippers like A.P. Moeller Maersk (OTC: AMKBF), Danaos Corp.(NYSE: DAC), and Seaspan Corp. (NYSE: SSW) could see a slight slowdown in shipping until Japanese manufacturers get back to work. That process will probably be slower than anticipated.

Crude oil carriers like Frontline Ltd. (NYSE: FRO) and Nordic American Tanker Shipping Ltd. (NYSE: NAT) should see a pick-up as more crude cargoes are sent to Japan to help fuel electricity generation plants. Demand will be a function of how quickly Japan’s refineries can come back on-line, and the length of time the Japanese must depend on crude oil to fuel their generators. Another possibility is that refined products would need to be imported if re-opening the refineries is delayed for long.

Japan’s crude stocks stood at 169 days at the end of December 2010, according to Balkans.com. The country won’t want to run down its stocks and have to replenish them at higher crude prices, but by judiciously calling on its stocks, the country could mitigate some of the expenses from buying and shipping additional supplies of crude.

Liquefied natural gas (LNG) carriers include Teekay Corp. (NYSE: TK), Teekay LNG Partners, L.P. (NYSE: TGP), and Golar LNG Ltd. (NASDAQ: GLNG). Japan is already the world’s largest importer of LNG and it is reasonable to expect the country to receive more in the days ahead. In the longer term, it could be that Japan decides to replace at least some of its nuclear generation with gas-fired generation. But that decision is still months away in all likelihood.

The lightly traded Guggenheim Shipping ETF (NYSE: SEA) is up nearly 2% today, and Teekay LNG Partners and Golar are both up about the same amount. Most of the other shippers are trading slightly up as well, with only Dry Ships down slightly.

Paul Ausick

Filed under: ADR, International Markets, Transports Tagged: AMKBF, DAC, DRYS, DSX, FRO, GLNG, GNK, NAT, SEA, SSW, TGP, TK

Oil Tankers Going Nowhere (OSG, TK, GMR, FRO, NAT, PBR)

Administrator — Thu, 28 Oct 2010 13:36:46 +0000

Day rates for crude oil supertankers, VLCCs, peaked in 2009 at around $100,000/day. Today, if you want to ship 2 million barrels of oil from the Middle East to Korea, you’d have to pay just $4,700/day. The collapsing rates are partly the result of a frenzy of new shipbuilding that started in 2008 when demand for oil was driving prices higher and higher. Another explanation is that demand for floating storage is way down, putting those ships back on the market and adding to the glut. Shipping companies Overseas Shipholding Group Inc. (NYSE: OSG), Teekay Corp. (NYSE: TK), General Maritime Corp. (NYSE: GMR), Frontline Ltd. (NYSE: FRO), and Nordic American Tanker Shipping (NYSE: NAT) are feeling the pinch, but some of the shippers’ shares trade near 52-week highs and some trade near 52-week lows.

The tanker fleet is predicted to grow by nearly 13% in 2011, according to an estimate by Morgan Stanley cited at Bloomberg News. There are currently about 526 VLCCs in the world’s fleet. The tonnage currently being built is equal to 27% of the existing tonnage and is the largest increase ever.

And the news won’t get better any time soon. Supertanker rates are expected to remain unprofitable for at least two years. Predictions of lower global GDP growth in 2011 could dampen international trade even more. One broker noted that rates for container ships have fallen for four straight weeks.

Frontline, the world’s largest supertanker owner, hit a new 52-week high in early May and has lost about 29% since then. The shares are still up more than 20% in past 12 months.

The story at Teekay is somewhat different. The shares posted a new 52-week high last week. The company has shed assets to some of its subsidiaries and announced that it would re-start its $200 million share buyback plan. The company also signed a contract with Brazil’s Petroleo Brasileiro SA (NYSE:PBR), or Petrobras, for a floating production storage and offloading vessel starting in the second quarter of 2012.

An analyst from Deutsche Bank has lowered his EPS loss estimate for Teekay from -$0.45 to -$0.75 for the third quarter. EPS loss estimates for General Maritime and Overseas Shipholding also widened. The analyst expects General Maritime to post an EPS loss of -$0.24 and Overseas Shipholding to post a whopping EPS loss of -$1.26, compared with an earlier expectation of -$0.43.

A Frontline executive noted that at current supertanker rates the company is better off anchoring ships and sending the crews fishing. That could be a long fishing trip.

Paul Ausick

Filed under: ADR, Oil & Gas, Transports Tagged: FRO, GMR, NAT, OSG, PBR, TK

Top Analyst Upgrades and Downgrades (ACH, ATHR, EAT, CTV, FSLR, ICE, MPEL, NAT, PNRA, SFL, TRV, TK)

Administrator — Tue, 26 Oct 2010 12:16:57 +0000

These are some of this Tuesday’s top analyst upgrades, downgrades, and initiations seen in Wall Street research calls.

Aluminum Corp Of China (NYSE: ACH) Cut to Undeweight at JPMorgan.
Atheros Communications Inc. (NASDAQ: ATHR) Raised to Outperform at William Blair.
Brinker International (NYSE: EAT) Cut to Underperform at BofA/ Merrill Lynch.
CommScope, Inc. (NYSE: CTV) Cut to Hold at Jefferies.
First Solar, Inc. (NASDAQ: FSLR) Reiterated Buy and $175 target at Auriga.
Intercontinental Exchange (NYSE: ICE) Cut to Hold at Deutsche Bank.
Melco Crown Entertainment Ltd. (NASDAQ: MPEL) Raised target to $6.30 at BofA/Merrill Lynch.
Nordic American Tanker Shipping (NYSE: NAT) Cut to Hold at Jefferies.
Panera Bread Co. (NASDAQ: PNRA) Cut to Neutral at BofA/Merrill Lynch.
Ship Finance International (NYSE: SFL) Cut to Hold at Jefferies.
The Travelers Companies, Inc. (NYSE: TRV) Cut to Sell at Deutsche Bank.
Teekay Corp. (NYSE: TK) Cut To Neutral From Overweight By JPMorgan; Raised To Buy From Hold By Jefferies.

You can join our free daily email distribution list to hear more about dividend trends, analyst upgrades and downgrades, top day trader and active trader alerts, news on Buffett and other investment gurus, IPOs, secondary offerings, private equity, and more.

JON C. OGG

Filed under: Analyst Calls Tagged: ACH, ATHR, CTV, EAT, FSLR, ICE, MPEL, NAT, PNRA, SFL, TK, TRV

Top Analyst Upgrades and Downgrades (CIEN, DRYS, ICE, IM, NAT, ORLY, RAX, PRSP, RF, STI, SLB, TMH, TIF)

247wallst — Mon, 25 Jan 2010 13:31:19 +0000

These are this Monday’s top analyst upgrades, downgrades, and initiations seen from Wall Street research calls:

Ciena Corp. (NASDAQ: CIEN) Started as Buy at Auriga.
DryShips (NASDAQ: DRYS) Raised to Buy at Cantor Fitzgerald.
Intercontinental Exchange (NYSE: ICE) Raised to Buy at Deutsche Bank.
Imgram Micro (NYSE: IM) Raised to Overweight at Thomas Weisel.
Nordic American Tanker (NYSE: NAT) Raised to Hold at Cantor Fitzgerald.
O’Reilly Auto (NASDAQ: ORLY) Raised to Outperform at FBR Capital.
Rackspace Hosting (NYSE: RAX) Started as Buy at Merriman Curhan Ford.
Prosperity Bancshares (NASDAQ: PRSP) Cut to Market Perform at BMO Capital Markets.
Regions Financial (NYSE: RF) Cut to Market Perform at FBR Capital.
SunTrust Banks (NYSE: STI) Cut to Sell at Stifel Nicolaus; Raised to Outperform at FBR Capital.
Schlumberger Ltd. (NYSE: SLB) Raised to Outperform at FBR Capital.
Team Health Holdings (NYSE: TMH) Started as Buy at Citigroup; Started as Overweight at Barclays; Started as Outperform at Morgan Keegan; Started as Neutral at Goldman Sachs; Started as Hold at Deutsche Bank.
Tiffany & Co. (NYSE: TIF) Raised to Overweight at HSBC.

You are invited to join our free daily email distribution list to hear about top analyst upgrades and downgrades, IPOs and secondary offerings, ongoing day trader and options trader alerts, stock and market rumors, Buffett and guru investor news, M&A and more.

JON C. OGG

Posted in Analyst Calls Tagged: CIEN, DRYS, ICE, IM, NAT, ORLY, PRSP, RAX, RF, SLB, STI, TIF, TMH

Cramer’s Going Global Theme Stock Picks for 2010 (VALE, STD, CHU, PCU, NAT, STO, BHP, BNS, JDSU)

247wallst — Wed, 06 Jan 2010 23:45:33 +0000

Jim Cramer came out with his series of themes for 2010 on CNBC’s MAD MONEY this evening, and tonight’s theme was ‘Going Global.’ Despite the market being overbought and the negative news headwinds, today held up better than expected. He called the remarkable bull market strong for everything recovering from autos to chemicals to chips to healthcare. Vale S.A. (NYSE: VALE), Banco Santander S.A. (NYSE: STD), China Unicom (NYSE: CHU), and Southern Copper (NYSE: PCU) were his developing nation picks. Nordic American Tanker Shipping (NYSE: NAT), Statoil (NYSE: STO), BHP Billiton (NYSE: BHP), and Bank Of Nova Scotia (NYSE: BNS) were his developed nation picks. He even endorsed JDS Uniphase Corp. (NASDAQ: JDSU).

Tonight’s picks for “going global” were for 20% of your portfolio and meant to be a hedge for protection against Nancy Pelosi. Brief explanations are below for the developing nations picks and for the developed country picks, although with most at or close to 52-week highs Cramer noted you might want to buy some now and wait or hope for a pullback.

In developing nations, Cramer picked Brazil, China, and Peru. Brazil’s economy is very insulated, growing, and has Vale S.A. (NYSE: VALE) is his pick for mining and construction with nickel and copper reserves and has double-digit growth. Banco Santander S.A. (NYSE: STD) is the parent of the huge Santander IPO last year. China is replacing America and Cramer noted that China Unicom (NYSE: CHU) is one of the largest phone players in China and has the exclusive on the iPhone with 21% of the wireless market and a chance to grow market share. Peru has one big thing despite being on a tear and having its debt upgraded, and that is Southern Copper (NYSE: PCU) in natural resources. It is number five on the planet for copper and China can’t get enough of it.

In developed countries with pro-business policies and low taxes, Cramer wanted to look at the nations of Norway, Australia, and Canada. Norway’s economy picks is for the strong currency and for its natural resources and that it exited the recession first and tightened its lending. Nordic American Tanker Shipping (NYSE: NAT) for transport shipping and Statoil (NYSE: STO) is the pick as the sixth largest European oil player. In Australia, Cramer likes the resource-driven economy and it effectively BHP Billiton (NYSE: BHP) is into all the major natural resources that is a one-stop shop for everything coming out of the ground. In Canada, it is also resource-driven and has very strict bank regulation that allowed the Canadians to miss out on the bank crisis. His pick for Canada is a bank: The Bank Of Nova Scotia (NYSE: BNS) even though analysts are against it. On the Lightning Round he endorsed JDS Uniphase (NASDAQ: JDSU) as being back and in the right spot, and he said “I invite management to appear on the show” because he wants to get deeper on that one.

I would like to personally invite you to join our free daily email distribution list from 24/7 Wall St. to hear about ongoing day trader and options trader alerts, analyst upgrades and downgrades, stock and market rumors, Buffett and guru investor news, M&A and IPOs, and more.

Cramer’s counter-terrorism and homeland security theme picks for 2010
Cramer’s Energy shortage stock picks theme for 2010.

JON C. OGG
JANUARY 6, 2010

Posted in ADR, Analyst Calls, Banking, China, Commodities, Cramer, Emerging Markets, Infrastructure, Metals, Oil & Gas Tagged: BHP, BNS, CHU, JDSU, NAT, PCU, STD, STO, VALE