Sociedad Quimica (SQM) is One of Cramer's Favorite Chilean Stocks

June 17, 2008 8:40 AM EDT

Last night's Mad Money featured Sociedad Quimica y Minera (NYSE: SQM), or Chemical and Mining Company of Chile, an integrated producer of potassium nitrate, iodine and lithium carbonate. Host Jim Cramer called Sociedad Quimica a "triple play of growth potential", and said he would currently be a buyer of the stock, one of his favorites from Chile.

First, Cramer likes Sociedad Quimica's exposure to the "red hot" Latin American market. Second, as Cramer has been a consistent proponent to the bull market in the ag sector, he mentioned Sociedad's large ag segment, pointing out that his thesis about growing food needs leading to more fertilizer production remains intact. Lastly, Cramer highlighted Sociedad Quimica as the world's largest producer of lithium, making this stock a play on plug-in cars and the "go green" revolution.

Considering the above potential catalysts, Cramer concluded the skit by reminding viewers that this stock is a Wall Street orphan, meaning that analysts have not yet begun covering the stock. As he implied on Friday's Mad Money, Jim feels that unloved stocks with strong fundamentals will see upside as research firms finally start to warm up to them.

Sociedad Quimica y Minera, or Chemical and Mining Company of Chile, Inc. engages in the production and distribution of potassium nitrate, iodine, and lithium carbonate worldwide.

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