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Mad Mail: Isn't Starbucks a China Play?

Published: Friday, 30 Nov 2007 | 11:49 AM ET

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By: Tom Brennan
Web Editor, Mad Money

Hi Jim!: Don't get me wrong - I'm not disagreeing with you about Starbucks' stock. I'm glad I got out when you told us to, about a year ago. But I have a question that I hope you can answer. While everyone recommends the stocks of Pepsico [PEP Loading... () ], Coca-Cola [KO Loading... () ], McDonald's [MCD Loading... () ], and YUM! [YUM Loading... () ] based on their growth in China, why doesn't the same factor apply to Starbucks [SBUX Loading... () ]? Thanks for all that you teach us. --Esther

Cramer says: “Pepsi is not a China play at all. McDonald’s, very minimal China, frankly. YUM, yes. Coke, some. Starbucks hasn’t really had, I think, dramatic success in China. I’m sure they might say it, but I don’t think they are into it. I think that’s one of the reasons again that Starbucks has not ignited itself. I don’t like that stock.”

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Dear Mr. Booyah: I watched your show on Monday when you indicated that your “bulletproof” picks were down. I think you were too hard on yourself. Your viewers should have taken into account your five-day rule before purchasing stocks. Any smart investor would not have pulled the trigger. I have been watching these stocks and have done my homework and I am still waiting for the entry point. I use your info as starting point and have turned 1,000 investments into 210,000 booyahs. I take my profits and invest in secure dividend-paying stocks. Thank you for helping me get out of debt. Remember to tell your viewers the five-day rule is the most important part of the homework. --Lou

Cramer says: “I wrote a whole book about it (Mad Money: Watch TV, Get Rich). The press has consistently disregarded it and graded me from the day the stock pops the next day. I’m very aggrieved about it. But because of viewers like you – I know my viewers know more than my critics.”

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Dear Jim: Alcatel-Lucent [ALU Loading... () ] seems to be awarded big contracts every day but still no movement. I know that management is a disaster. Will it take mega-layoffs or does it go deeper than that? --Joe

Cramer says: “All it takes is a change at the top. If Patricia Russo gets fired, we’ll probably recommend the stock.”

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Dear Jim: I love your show. The enthusiasm and energy that you project defines your show like no others. I want to invest in some L.E.D. lighting manufacturers and would like to know who you recommend. Thanks for your help. --Shane

Cramer says: “The Genlyte [GLYT Loading... () ] deal was an eye-opener. I like LSI [LYTS Loading... () ].”

Jim's charitable trust owns McDonald's.

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Mad Mail: Isn't Starbucks a China Play?