Mexican Revival with Jim Cramer
Published On: March 25, 2013
Mexican Revival with Jim Cramer
Published On: March 25, 2013
March 25th, 2013 New York — Jim Cramer of the CNBC television finance show, Mad Money, said today that Mexico manufacturing companies had grown dramatically in recent months, and he cited GDP numbers that suggests Mexico’s economy had expanded at a faster rate than the United State’s economy.
In light of this news, Cramer picked a Kansas City based railroad interest called Kansas City Southern with a network of railroad tracks in Mexico as his pick of companies most likely to give a healthy return on the investment in 2013. According to Cramer, KCS has thousands of networked miles of track in Mexico connected to thousands of miles of tracks in the US.
“Washington is gridlocked and none of our politicians really care about getting our economy strong,” Cramer said in a live program. In describing his decision to invest in KCS and Mexico manufacturing companies, Cramer concluded that investors should look to invest in other places. “For 2013, it’s anywhere but here.” Here, of course, means the U.S. In Mexico, the cartel-related violence has died down with what Cramer characterizes as a “sub-rosa deal” with the Mexican president. That has stabilized the Mexican economy.
Cramer recommends that investors consider Mexico as a place to invest. Manufacturing in Mexico has expanded in recent months. For example, KCS is poised to take advantage of the expansion of major car manufacturing plants in Guanajuato and Puebla Mexico. The newly manufactured cars must be shipped to the U.S. by train, so KCS is likely to take advantage of this change. “Mexico’s auto business is on fire thanks to a phenomenon that’s being called ‘near sourcing,'” Cramer said. ‘Near sourcing’ allows global companies to manufacture goods in Mexico and sell them in the U.S.