Jim Cramer’s Play On $16 Corn & Wheat (POT, MOO)
March 3, 2008 by Douglas A. McIntyreJim Cramer came out on CNBC’s MAD MONEY tonight, predicting huge gains in agriculture prices and in gold. Unlike Basketball’s March Madness and a "Sweet 16" his "sweet 16" targets all revolve around "$16" for the commodity. Cramer said he is making some key changes to some of his stocks picks in each of these sectors.
His first theme is agriculture. He thinks agriculture is being thrown through the roof because of ethanol. Cramer thinks that corn goes $16 and wheat goes to $16. He has been very positive on this one over and over and here were his last picks. He wants to switch gears and you should go into Potash of Saskatchewan (NYSE: POT) because of severe pricing power. He loves the high barriers to entry and lack of competition. We also had a recent IPO get filed in this sector. He noted that consensus estimates are 107% in 2008, and with a fair earnings multiple that stock could see significantly higher prices. If you are still unsure about picking individual stocks in this sector, we would note that you can look at the ETF for the agriculture play that is the Market Vectors Global Agribusiness ETF (AMEX: MOO).
Cramer is also talking up some new picks he has for gold and also in higher gas prices.
Jon C. Ogg
March 3, 2008
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