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Aug.24
3:14 PM ET

In Monday’s Stop Trading!, Cramer is making the call on the media, advertising and two profitable “pure plays” he sees in this market.

With news that numerous advertisers are pulling their sponsorships from Glenn Beck’s nightly show on Fox News Channel following controversial comments the host made… but is there a stock story here? Cramer thinks it’s more relevant for the advertisers themselves than for Newscorp [NWSA  Loading...      ()   ], the parent company of Fox News. He points out how Unilever has increased spending on media advertising, taking advantage of the low rates to buy advertising in broad platforms.

Cramer says the companies to watch for are the ones following the Unilever [UL  Loading...      ()   ] model of increased spending, as they’ll get more bang for their advertising buck. He also points out that the companies who pulled back on spending were the ones who perform as well last quarter.

The Mad Money host also doesn’t see this news as bad for the Newscorp stock and doesn’t recommend selling simply on these headlines. Although the company draws a significant part of its profits from its Fox properties, he points out that the advertising dollars have simply been shifted around the network as a result of the Beck debacle.

With gigantic volume in stocks like Fannie Mae [FNM  Loading...      ()   ] , Freddie Mac [FRE  Loading...      ()   ] and AIG [AIG  Loading...      ()   ], Cramer thinks Knight Capital’s [NITE  Loading...      ()   ] 52-week high is quite revealing, because in this market there are few brokers who are doing so well and Knight is set to oversee a good portion of this volume. Cramer thinks the company is a buy, saying “I think Knight’s fabulous. I think that it is just a really well-run company.” He sees retail investing coming back, and highlights Knight Capital as a “pure play.”

Cramer sees some more pure plays in the market, and he brings up his recommendations of Permian Basin Royalty Trust [PBT  Loading...      ()   ], which he sees as pure plays on the rising price of oil. However it doesn’t hurt that the companies have good dividend-like returns, although these returns are taxed. Cramer likes these plays specifically for inclusion in an IRA portfolio, in order to avoid the tax penalty.

For Cramer’s full analysis and for what shape he sees this recovery taking, check out the video!


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