'Cramer's European Vacation'

'Going Dutch'

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So... What's hot right now overseas?...

Europe!

Every day this week, I am going to add a new stock to my Europa portfolio... because it's my job to find you the best bull markets worldwide...

Europe's en fuego...

One more reason for us to stop panicking about (Fed) Chairman Uncle Ben Bernanke, and rising interest rates at home... which we hear endlessly every hour, that is going to derail the bull...

Wait a second!...

European rates have been rising for years.  They're still jacking them up!  And their markets are doing much better than ours!...

Low rates are a sign that people don't have faith in the economy and don't have faith in earnings and, when rates go up, that's often a sign of diminished earnings risk... We don't think a lot of companies are going to miss their estimates...

That means the earnings of the European companies must be pretty strong... they can transcend the rate rises.  We can't.

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I think Europe is red-hot right now and I want to help you find the buys...

I think you want Europe...

Now, look.  I could do the easy thing, right?... Just go buy a European ETF (i.e., exchange traded fund)...

Putting aside the fact that I think that most ETFs are basically useless... there's another reason I'm not telling you to buy an ETF... another reason why I'm focused on companies on this show...

If I were to tell you to buy an ETF, you wouldn't just be buying best of breed European companies, you'd get all the 'Eurotrash' too!...

Since I know what's best of breed, I'd rather give you the good names, and let you pass on the Eurotrash...

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First, we're pimping our way to The Netherlands...

The Netherlands are so hot, it's scary...

That's our one tonight... that's our first foreign buy...

Philips Electronics N.V. (PHG)

It's better than any Dutch ETF... better than any European ETF... is PHG.

It's the giant electronics company that few know...

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This stock cannot be beaten...

My read on PHG is that it's worth 20% more than the current price.

Here's how we get there...

PHG has four major consolidated businesses...

Medical, medical systems, domestic appliances, personal care, consumer electronics and lighting...

By estimate, these four business are worth $39 bucks...

PHG also has four major unconsolidated investments and, by estimates... now this is really important, because this is where the upside is... they're worth $10 a share...

This gives us an enterprise value right now of $49... Okay, I'm throwing in the $3 (per share) in cash... and that gives you a price of $52.58...

That's roughly 20% over the current price of $43.75.

That's right!  20%.

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Big picture... PHG has at least 20% upside... It's a great European manufacturer of high-tech gear...

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The bottom line!:     Any true international pimp/investor should love to own Philips Electronics N.V. (PHG)... Limit orders.  Don' t pay up, or you will be sorely disappointed.  But, wait a couple of days... Grab this one.  I think there's 20% upside in the hottest market, which is Europe. 

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