Poland Conquers Russia?
As former Second and Third World countries rapidly expand and grow, their economies shed cash that’s just begging to be spent. The search for the perfect stock play on this trend in disposable income has been a recurring theme on Mad Money, and Cramer said Thursday he’s found another opportunity.
Central European Distribution Co. is the number-one vodka producer in Poland, a country that’s enjoying 6% gross-domestic-product growth, declining taxes and a strengthening currency. CEDC also imports booze – premium liquor – and this is why Cramer likes the stock.
As Poles make more money, they’re trading bottom shelf vodka for more expensive brands like Skyy. Cognac drinkers are reaching for Remy Martin, scotch drinkers for Glenfiddich, brandy lovers for Rayne and St. Remy, and beer fans for Guinness. CEDC distributes all these brands plus about 900 others.
CEDC’s making a power move into Russia, too. The company bought 85% of Parliament Vodka, a premium name that fits in nicely with the liquor upgrade story. CEDC also has 75% of White Hall, a Russian importer of marquee brands like Hennssey and Dom Perignon.
Thanks to Cramer, Homegamers who buy CEDC will be way ahead of the game. No major investment houses cover the stock yet. Once they catch on, the share price should start to move up.
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