Cramer's ethanol stock picks

Posted Mar 30th 2007 5:35PM by Jon Ogg
Filed under: Analyst Reports, Archer-Daniels-Midland (ADM), Deere and Co (DE)

On today's STOP TRADING segment on CNBC, Jim Cramer talked about some of his ethanol plays. As far as the crop report, Cramer thinks they aren't focusing on the secular trends. He likes these regardless of the crop acreage report:

Archer-Daniels-Midland (NYSE: ADM)
Deere & Co. (NYSE: DE)
Bunge Ltd. (NYSE: BG)
Monsanto Co. (NYSE: MON)

He said NO on the pure plays like Pacific Ethanol (NASDAQ: PEIX) or the Andersons Inc. (NYSE: ANDE) because you can buy best-of-breed names. On oil Cramer addressed the Iran issue, and the Oil Stocks are acting like there will be a resolution to Iran very soon. The stocks are telling you that there will be a breakthrough this weekend and that is why they are down.

Cramer brought up Take-Two Interactive Software (NYSE: TTWO) and said that GTA may get them out of the hole, but that is still a problem-stock with uncertainty. QUALCOMM Inc. (NYSE: QCOM) is a persistent stock. Cramer noted the company has already signaled a good quarter, but he said it is up on window dressing and right now it's a "Don't Buy" until it comes in.

Tags: ANDE, PEIX