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Cramer on Halloween: Avoid scary HANS and go to Brazil

Last night on MAD MONEY Cramer gave a stock to avoid as a scary stock on Halloween. He said that beverage maker Hansen Natural Corp. (NASDAQ:HANS) is that scary stock. He said that even after the sell-off, it is up 150% and it has nothing proprietary about it.

For a backgrounder with Cramer on HANS: On September 13, 2006 Cramer gave the same call saying its trajectory made it a broken stock. It closed at $29.76 back then, but a dueling analyst call with a big upgrade the next morning caused HANS to rise 10% immediately. Today, HANS shares closed up 1.3% at $31.75.

HANS will report earnings next week, but Cramer thinks you need to get out before the report. He reminded about the 20+% drop after last earnings. He also said that Budweiser took over its distribution. Cramer said that the medical profession may even turn on these companies because kids are using their products to get high.

Cramer also went over his Best of Breed picks in Brazil. Cramer says it is nirvana down there with high growth and decent inflation. A socialist who is becoming a great quiet capitalist was recently elected there. He said that the situation in Brazil merits that investors need to be there.

CVRD-Companhia Vale do Rio Doce (NYSE:RIO) just bought Inco, and this is a great company for Cramer. He said the stock was beaten up for the acquisition of Inco, but he thinks the it is highly accretive and it should have been bought instead of sold off. Cramer also likes the cost containment they are doing, and he thinks the estimates are too low for 2007.

He said BHP Billiton Ltd (NYSE:BHP) & Rio Tintoplc (NYSE:RTP) are the stocks that are popular now with money managers, but he thinks money managers will turn this into a core holding soon. He isn't calling it a double, and investors need to know that it already has a $61.8 Billion market cap. He thinks there may be 1 or 2 months before the Street switches its stance.

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Last updated: May 28, 2012: 04:34 PM

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