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Cramer's 'Mad Money' Recap: The Next Big TV Market
April 11, 2008, TheStreet.com
"What happened in our markets today is exactly why I've been focusing on Russian stocks all week," Jim Cramer told viewers of his "Mad Money" TV show Friday (11th April).
He reminded viewers that they should never rely solely on the U.S. economy and should always diversify, with at least 20% of their portfolios in overseas stocks.
For his final stock pick in his week-long "From Russia With Love" series of Eastern European stocks to own, Cramer recommended Central European Media.
According to Cramer, the story at CETV is simply one of growth, growth, and more growth. The company commands a phenomenal 43% marketshare in its home country of the Czech Republic, and has sizeable share in every country where it operates.
"CETV blankets all of Eastern Europe," said Cramer. Better still, all of CETV's markets are under-penetrated, with ad revenues growing at 5% a year on average.
CETV is up 61% since he first recommended it on Nov. 29, 2005. Cramer is reiterating his buy, citing the company's stellar fourth-quarter results, in which it posted a 41% increase in revenues. The company trades at just 16.8 times expected earnings, but has a long-term growth rate of 31%.
"I call a stock cheap when the company has good fundamentals and it trades at a multiple below its growth rate," said Cramer. "Get into CETV while it's cheap," he continued.
For additional information, please contact:
Romana Tomasova
Director of Corporate Communications
Central European Media Enterprises
+44 (0)20 7430 5357
romana.tomasova@cme-net.com
