Cramer in China: Cramer's top five China stock picks

Cramer in China: Cramer's top five China stock picks
Posted Jun 13th 2007 6:55PM by Jon OggFiled under: International markets, Television, China
On tonight's MAD MONEY on CNBC, Jim Cramer dedicated the night to China. He's not gung ho on Chinese stocks, but he's willing to review some of them. (As a reminder, Cramer said he doesn't like investing in China, he doesn't trust China, and he thinks it is overvalued.) He has forecasted an imminent 8% to 10% pullback any time, because, he says, the market is overheated. After you get that pullback then you can buy the stocks, but he advises not to do so now. As a reminder, Cramer said he wouldn't cross the river with his charitable trust to invest in China, even if there was a 20% pullback in the market. But Cramer does have some picks; he has three solid steady plays and two speculative stock picks. The 'solid plays':
CNOOC Limited (NYSE: CEO) is China's nationalized oil play, the number one offshore, a large player in Indonesia; it is 67% government-owned. Under the production sharing, the company gets the mandatory rights. As long as oil stays high this one is a winner, he thinks. ADR's have a $45 billion market cap; 3% dividend yield.
China Mobile Limited (NYSE: CHL), says Cramer, is the winner in the Chinese wireless market with 68% of the mobile users in China. The government owns the majority of the company. It has been on hold because of rumors that China Telecom might enter wireless; it has 1.9% dividend; $191 billion market cap.
Seaspan Corporation (NYSE: SSW) is a shipping vessel operator for overseas freight shipments; 6% dividend; $1.45 billion market cap. He likes this better than General Maritime Corporation (NYSE: GMR) now. The 'speculative plays':
Focus Media Holding Limited (NASDAQ: FMCN) runs display ads all over China and is now going online, and it is his first pick. It advertises in cities whose population exceeds 1 million people.
Baidu.com, Inc. (NASDAQ: BIDU) is called the "Google of China" by many, but it is actually beating Google at its own game in China. As a last reminder, Cramer said these names are only provided because YOU the audience keep asking for China picks, and he isn't a big fan. He thinks a big pullback is imminent and he wouldn't buy until after that correction occurs. He wouldn't buy these speculative names at all right now, and would only buy these on serious pullbacks. Consider yourself (he says) "warned and informed."