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Monday, November 27, 2006

November 27th - Weak Dollar Plays, STZ SQM

Cramer started out looking at the weak dollar and said that there is always a bull market in some sector. He said that global companies don't get hurt by the weaker dollar and named several companies who have most of their sales outside of the US. He said the best stocks that fit this profile are:

Altria Group Inc. (MO)

Procter & Gamble Co. (PG)
EI DuPont de Nemours & Co. (DD)
Halliburton Co. (HAL)

This segment was Cramer's game-plan which he normally does on Friday's and where he normally picks bigger, safer stocks. These 4 I don't consider to be short candidates based on current price and size.

Next Cramer looked at red wine and the recent reports that it has shown to increase the life span of lab mice. He recommended Constellation Brands Inc. (STZ) after the stock has hardly moved after this "good sector news".

Closing Price: $27.51
After Hours High and Level Off Price: $28.05
Percent Increase: 2.0%
Sector: Consumer Goods
Days to Cover: 5.4
Short %: 4.18 %
% Held by Insiders: %
% Held by Institutions: %
50 Day Moving Average: $27.87
200 Day Moving Average: $26.03

It appears that the Cramer audience also isn't eager to bid up the stock that Cramer thinks should have sky rocketed after the news from earlier this month. The was close to the 50 day moving average and has now gone above it after hours, which would typically be seen as a bullish sign. Not exactly a big enough spike after hours to consider a short yet. This may also be because of the big down day in the market which may damper peoples buying spirits. The questions to consider are; are we looking at another big down day tomorrow which will likely bring this one down on any spike tomorrow, and will this even open high enough to bother shorting? For me, there would have to be a much more considerable spike above the current after hours levels to make it worth while.

Finally Cramer recommended Chemical & Mining Co. of Chile Inc. (SQM) as a play on Chile.

Closing Price: $132.00
Sector: Basic Materials
Days to Cover: 0.7
Short %: 3.16 %
% Held by Insiders: %
% Held by Institutions: 9.90 %
50 Day Moving Average: $121.89
200 Day Moving Average: $112.03

Obviously too expensive here at $132.00 and the stock is only up around 25-cents after hours.

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