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Family Therapy

Friday, 15 Jun 2007 | 12:58 PM ET

Jim, Tina and their son, Sam, from Florida disagree over Masco. Dad likes home-improvement company because of its long-term history of earnings growth, but Mom dislikes it because of the poor housing market in general.

Family Therapy
Mad Money host Jim Cramer puts on his therapist hat

As a short-term play, Cramer has to agree with Tina. But Masco has a history of taking share during downturns, “so Masco’s going to come out of this stronger,” he said. That means over the long term, which is usually how families invest, Cramer gives the nod to Jim and his desire to stick with the stock.

Joe and his daughter, Venessa, from New York have been fighting as father's and teenaged girls tend to do. But this isn't over boys or make-up. They're battling over which is the better buy: Coke or Pepsi .

Coke is a great international play, but it doesn’t grow as quickly as Pepsi, which is smaller overseas, Cramer says. Pepsi has a great management team that’s pushing for that international growth, though. Cramer calls KO CEO Neville Isdell a “game changer.”

The pullback in Coke’s share price makes it a better trade for the rest of the year, Cramer says, but the strength of Frito-Lay makes Pepsi the choice of the next generation - or at least the next five years.

Questions? Comments? madmoney@cnbc.com

  Price   Change %Change
KO
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MAS
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PEP
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