Jim Cramer is the host of CNBC's Mad Money and the co-founder of TheStreet.com. In 1987, Cramer started his own hedge fund and returned an average of 24% per year between 1987 and 2001. Cramer has also written six money management books.
During the last week, his favorite buy recommendations (10 stocks that recommended in at least two separate shows) on Mad Money were as follows:
SPDR Gold Trust ETF (GLD): The volatility in the stock market became increasingly evident and Cramer bolstered his stance on owning gold to insure the portfolio against drops in markets. A viewer wanted to know if Cramer thought silver was going to rise sharply again. Cramer thinks owners of the iShares Silver Trust (SLV) had a good trade, but prefers owning gold through the SPDR Gold Trust ETF. Cramer stated that the SPDR Gold Trust ETF is the safest, most convenient way to play the precious metal. John Paulson of Paulson & Co. has 13% of its portfolio in GLD (get more of Paulson’s holdings here). Gold is not done going up and the only time Cramer would recommend selling gold is when it represents more than 20% of your portfolio.
Pier 1 Imports (PIR): Due to fears of what may happen in Europe, what Pier One has to report on Thursday might not matter. The stock rose 7,000% since the market collapse in 2008, as it executed big improvement plans that generated tremendous gains for shareholders. Cramer said the company has restructured its brand for 4 years and still has room to grow. Cramer thinks Pier 1 may be a great speculation play, as they are still in the midst of a multi-year turnaround.
Cummins (CMI): This engine-maker does a lot of business in China, but the stock has been hammered ever since China has been aggressively raising rates. Cummins has a $17.7 billion market cap, and the stock is trading $10 above its 52-week low of $79 per share.
Caterpillar (CAT): This Cramer favorite has experienced trouble in China since the country’s inflation fears became widespread. The heavy-equipment maker has a $52 million market cap and the stock yields 2%. Louis Navellier of Navellier & Associates owns over 400,000 shares (see more of Navellier’s stocks here).
Baidu (BIDU): China’s version of Google (GOOG) is the only Chinese stock Cramer will recommend because the government essentially blessed the company by forcing Google out of the picture (forcing them to comply with local laws or leave). The stock has a $50 billion market cap and trades at 45 times earnings.
Wynn Resorts (WYNN): Cramer loves this stock and said it could ramp up on the interest rate news from China because their most important market is Macau. This gaming company has a $19 billion market cap and yields 1.3%.
Coach (COH): Cramer likes this leather goods maker and thinks it needs to be bought on the way down. Coach is also a major China play. Coach has a $15.5 billion market cap, trades at 18 times earnings and yields 1.6%.
Alcoa (AA): Cramer defended his support of this basic materials company because it is dirt cheap and will go back up when the economy turns around. Cramer’s charitable trust owns Alcoa. Cramer said a resurging China will provide Alcoa with continued growth. The aluminum maker has a $12.3 billion market cap, trades at 13.5 times earnings and yields just over 1%.
Starbucks (SBUX): Cramer repeatedly recommended owning Starbucks, especially in comparison to Dunkin‘ Brands (DNKN). Cramer thinks the price-to-earnings multiple makes Dunkin’ too expensive. Dunkin’ Brands has a $3.15 billion market cap. Starbucks will depend upon China’s growing middle class for future growth.
United Technologies (UTX): United Technologies provides technology products and services to the global aerospace and building systems industries. Cramer said a rebound in China will generate beneficial future upside for United Technologies. They reaffirmed their strong outlook for the quarter. United Technologies has a $66 billion market cap and offers a 2.6% yield. The stock trades at 14 times earnings.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.