Jim Cramer was out with bullish comments on Companhia Vale Rio Doce (RIO), calling it the cheapest mining stock in the world, on CNBC’s Friday “Stop Trading!” show. Cramer spoke with Rio Tinto’s (RTP) CEO, Tom Albanese who stopped by to discuss his company’s prospects. Albanese said China’s demand for commodities is large. He explained that Toyota Motors’ (TM) battery powered car needs twice as much copper to produce and it needs a lot of aluminum, which will spike demand for both commodities - benefiting Rio Tinto. He said this new car could soon become a reality. Moving on, Cramer said stay away from banks and mortgage insurers like Bank of America (BAC), Suntrust (STI), Citigroup (C) and Ambac (ABK) because value-investors bought into these stocks too early. “The losses that these mutual funds are suffering, and the pullout that they’re having, is causing a lot of what we see,” Cramer said. He thinks the value funds have run out of capital that would have otherwise stabilized the sector. Finally, Cramer said the only Chinese stock he is recommending is Gushan Environment Energy (GU). “The Chinese need alternative energy more than we do, and I would look to them for new innovations,” he said.
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