no china

stable with upside potential

the food industry isnt going anywhere

Strategas screened for staple companies with net margins above three-year average, improving net operating cash flow, and reasonable price-to-sales ratios relative to the sector's average, and came up with names including Altria (MO), Kroger (KR), Sysco (SYY), H.J. Heinz (HNZ), Safeway (SWY), and Molson Coors Brewing (TAP).

HJ Heinz (HNZ) offers a 4% dividend yield. A stronger dollar has caused some weakness in the stock, but Cramer thinks HNZ should be bought right now. He’s not sure how much longer the company can stay independent if the stock goes any lower.

You have to expect that interest rates are going through the floor, so if you can find a self-financing company, one that is a food bank that yields an attractive 4% -- here I am talking about Altria (MO), Kraft (KFT), H.J. Heinz (HNZ) -- you could take in a 25% position right here, as the risk/reward has changed.

Cramer: Companies That'll Rule the World: Certain companies have what it takes to be leaders in the new economy, says Jim Cramer.

Click here to watch the video.

The first, the bull market, is what I call the "food bank" world, which consists of self-financing companies that, even if they do need to tap the debt markets to expand, represent the only trustworthy debt. These are companies like General Mills (GIS), HJ Heinz (HNZ), Procter & Gamble (PG) Colgate (CL) and Pepsico (PEP). Like it or not, they are growing and have solid balance sheets. I say "like it or not" because their price-to-earnings ratios are stretched. Nevertheless, they are safe havens and money has to go somewhere. This is a limited group, and it is hard to see it expanding because the only reason you buy these stocks is if you think we are going into a tough recession. I think that's the odds-on possibility. (Note that these stocks took some hits Friday on rampant and misplaced optimism in the market.)

Cramer: I Expect FedEx to Deliver: Jim Cramer sees FedEx and UPS as the winners of lower oil prices.

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Commodity costs, specifically their decline, also helps the companies that were forced to raise prices when those costs were higher. Because the companies won’t reduce prices in tandem with that decline. That means more profits and better-than-expected earnings. Watch for reports from Heinz (HNZ), Kimberly-Clark (KMB), UPS (UPS), FedEx (FDX) and Carnival Cruise (CCL).

i love companies with good management but just hate this one...( i do not like ketch ups...