Mad Mail: What do Olympics Mean for Coke?

Hey Jim: I'm hoping to get your latest book for Father's Day. Last week, you talked about the virtues of Coca-Cola. I'm expecting it to ramp up into the summer with the Olympics coming and huge percentage of sales overseas. When do you think KO will start to move up again? --Jeff in Iowa

Cramer says: “Your thinking’s misplaced. That’s not going to cause the stock to ramp at all. What will cause it to ramp is a belief that the economy’s slowing, the dollar’s going to go lower, and the raw costs of [what’s] inside a Coke can are going to go down. I personally think Coke is a buy right here. Why? Because they have the raw costs under control, and it’s a huge international company with a big buyback. I would buy it here, but not – I repeat not – because of the Olympics play.”

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Cramer: I am a longtime fan, but I am wondering why I seemed to have hopped on the wrong bandwagon. My latest buys have included Gafisa and Siderurgica, and I really thought that Brazil was en fuego. Not so lately. Has something fundamentally changed? Are you still behind Brazil? --Steve in New Mexico

Cramer says: I'm still behind Brazil, but “this has become a very tough market. The Brazilian stocks go down first. They recover first. I want to keep buying. I think you should continue to buy Gafisa, which is really good. I really like Brazil here.”

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Hi Jim: The U.S. wind industry has received a production tax credit subsidy since 1993, and it is set to expire at the end of 2008. Wind has been the second-largest source of new electrical capacity in the nation, behind natural gas, for the past three years. How long does the wind industry need to receive the tax credit, and what happens to the value of wind stocks if the tax credit ends? --Angie

Cramer says: “My work says it is not going to end and you don’t have to worry about it and can continue to buy wind stocks.”

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