Mad Mail: Drinking Through This Recession

Jim: Love the show! You are the best in the business – keep telling it like it is. A few months back, people were worried that farmers would not have the money they need to be able to get this year's crops off to a good start. First, is this true or still true, and second, could you play the agricultural segment as an ETF? Thanks for all you do. Booyah. --Tim

Cramer says: “We don’t use ETFs when we can pick stocks. And the best ag play is Terra Nitrogen because it has that great yield. That’s the way to go. And it’s a worldwide demand for food. So we don’t have to worry about domestic demand. And there’s money. By the way, the farmers, they’re so powerful in Washington they can stop anything. They’ll get what they want.”


Cramer: I picked up Diageo to play during this recession. It has a great balance sheet, great products and sells globally. Why has it taken a huge downturn? Should I buy more now that it's around its 52-week low? What do you recommend? --David

Cramer says: “…Alcohol did not hold up in this recession. Diageo’s great if you want to put it away, but frankly there’s no momentum there whatsoever. So don’t expect anything soon.”


Jim: Can you explain more about why you are so bullish about Nucor's future prospects? They are facing a first-quarter loss per share of 55 cents to 65 cents with no clear end in sight to this economic doom. When you had CEO Dan DiMicco on your show months ago, they were profitable at 50% capacity, but now they are losing quite a bit. During yesterday's Lightning Round, you said you liked NUE better than U.S. Steel . I want to believe this, but how did you come up with that? Keep up the great work! --Mark

Cramer says: “Nucor does not have a pension problem. The research says that U.S. Steel does…Why do I like Nucor? Because it’s the best run. Now, that said, I am concerned about Nucor up here. And I would wait for a pullback. And I’d love to hear from Dan DiMicco about the dividend because…they need to make a little more money, and they’re not.”

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