The New Gold Rush: Credit Cards and West Africa
In Monday’s Stop Trading! Segment, with the new credit card bill of rights looming in the not-so-distant future, Cramer takes to task the effect this will have on the big players in the credit card industry.
Like everything else in the stock market, what matters here are margins and how much the company makes, Cramer says. He thinks the companies are still good at selling their products and that the fundamentals stand to change little as result of the bill.
Cramer looks to companies like Capital One , which is potentially priced “in the hole,” maybe a little cheaper as a result of the credit card chatter, and he thinks it’s a good time to be invested in COF, which presents an interesting opportunity.
Although Cramer says people are reluctant to make recommendations on bank stocks of late, some companies are showing opportunities, big players like Wells Fargo . The group as a whole acts very well, says Cramer, citing Huntington Bancshares , which boasts solid new management.
Transaction-oriented companies like Visa and Mastercard don’t have the debt-default concerns that credit card issuers do. Cramer considers Visa a very cheap stock, and Cramer has been buying for his charitable trust. He also thinks Mastercard is not as cheap, and had a less exciting quarter than Visa.
The West African Gold Rush
Up 30% this year and one of the best performers on the FTSE 100 last year, Randgold Resources is betting on gold mines in West African countries like Mali and Cote d’Ivoire. However, Cramer is iffy about investments in countries you wouldn’t necessarily bring your kids to.
“In terms of mine safety, I’d rather have a mine that’s in Canada,” a country Cramer would feel safer investing in. To get the full perspective on the company, watch the video with Mark Bristow, the CEO of Rangold, Resources, a company that is investing heavily in Western Africa, and as a result has seen some big gains.
Cramer's Charitable Trust owns Wells Fargo and Visa
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