In two months I predict Cramer will be back on his show with that Crow prop he needs to pull out and eat every so often.
He sites the ease with which competitors can come in and compete with these companies. I don't think so. Bidu/Google spat is a prime example. The chinese government wants its auto industry strong and I doubt they will allow serious competition to come into this industry anytime soon. These are the best auto supply companies in China and there is little new competition coming online within China.
If its so easy to compete, then why recommend the three US suppliers he mentioned. Don't they also have to compete? What a lame argument. He did not make his case.
As for the % gain this year in the stock prices -- so what? This a very rapaid growing area within China and its a long-term trend.
Ignore Cramer. This almost sounds like a takedown so his Wall Street buddies can get in cheaper.
I like Cramer, but in this case he is way out there!
I agree! In fact I own very few large US companies among the 102 stocks that I own in my retirement accounts (as of today). I've been selling the ones I did own over the last two months and either buying smaller US issues or going with ADR's. Foreign stocks make up about 75% of my portfolio now. Only about 10% are large US companies and nearly all of those get a majority of their revenues outside the US.
Cramer can wave the flag all he wants but the truth is the US is becoming more like Europe. We have a quasi-socialist government, an aging population and tax policies which will keep our economy stagnant. I've decided that most all of my money needs to be focused on Asia, India and Latin America. I'm thinking long-term here. These areas have growing populations and that means economic growth. The US, Japan and Western Europe is not where I want to make my long-term bets in the Market. China Automotive Systems is in a great growth industry in a great growth area of the world. I invest my money to make money not make political statements.
Joining Cramer on my wall of shame is Larry Kudlow. Just another mouth touting investment in the US despite the facts.