Mad Money

Cramer: Two Ag Stocks with 'Huge Legs'

In Wednesday's Stop Trading!, Cramer was looking for buying opportunities in places he previously hasn't been quick to recommend. A country he honed in on was Afghanistan, in the wake of President Obama's announced troop surge, and he also focused Ag stocks, a sector which Cramer has been bearish on for some time.

 

Although Cramer doesn't look at war situations as opportunities for profit, the fact is that when wars are fought, certain companies inevitably stand to benefit from increased orders arising from heightened government demand. One stock specifically, Alliant Tech - a company that produces weaponry such as bullets - experienced increased orders as a result of the first American surge in the Middle East and may see a similar increase in the wake of Obama's announced increase in US troops numbers.

On the developing countries front, Cramer highlights Freeport McMoran and Apache as companies that are "willing to go where nobody else is willing to go," like Cuba or Afghanistan for instance, if opportunities exist within their borders.

Back on the home soil, Cramer is interested in Agricultural stocks, a group which he thinks has "huge legs," highlighting Monsanto , having the potential to pop another 6-7 points based on their visibility going into 2012. Cramer thinks the group as a whole will emerge from their most recent bear stretch very strongly, also pointing out upward potential in Potash , as we may have seen a bottom in fertilizer prices.

For Cramer's full analysis, check out the video!


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