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Stop Trading!: Buy Coke

Wednesday, 9 Jan 2008 | 3:51 PM ET


Coca-Cola, one of five Dow components still higher for the year, is a buy, Cramer said on Wednesday’s Stop Trading! segment.

Stop Trading, Listen to Cramer!
Mad Money host Jim Cramer shares his stock picks and pans with CNBC's Erin Burnett.

Coke said its raw costs – the major growth barrier for any food and beverage company – have already peaked and investors are buying it up like a drug stock, Cramer said. Along with consistent earnings and a weak U.S. dollar, he thinks KO goes to $70.

On the news that Berkshire Hathaway may be interested in purchasing one of the struggling bond insurers, Cramer voiced skepticism. Why would Buffett’s company open a bond business with the intention of crushing the competition but then want to buy the competition?

Cramer also said that Google and Apple will be the “tells” that signal the end of this decline in tech. Both stocks have been going down because they are easy stocks to raise capital in, not because either has unsound fundamentals. When they begin to go higher – and they already are – expect the Nasdaq to follow, he said.

Questions for Cramer? madmoney@cnbc.com

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  Price   Change %Change
KO
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AAPL
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GOOGL
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