The best play on Brazil’s prosperity isn’t Brazilian, Cramer said Thursday, it’s Mexico’s America Movil.
This week the Mad Money host has been extolling the virtues of Brazil’s economy, trumpeting the success of miner Vale and oiler PetroBras. But the money from those exports has to go somewhere, and Cramer said the middle class is seeing a good chunk of it. Since cell phones are a status symbol among this growing group, business is booming for America Movil .
And the stock’s multiple cheap, too. Despite tremendous growth – 53% for earnings in U.S. dollars – America Movil trades at a paltry 14 times this year’s earnings. Cramer was convinced that an American company with the same numbers would fetch a much bigger number.
If this isn’t enough, take note of one of AMX’s largest investors, Carlos Slim. The richest man in the world owns 33% of the stock, “and he knows what he’s doing,” Cramer said.
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