Segment 1: Woodward Governor (WGOV) Analysis
Cramer thinks that this stock is perfect for today's investing environment, as well as representing the "new tech" movement towards industrial companies that solve real problems that Cramer is promoting. The company makes products that increase the efficiencies of all types of motors and turbines in aircraft. They have beat earnings estimates 6 straight quarters, and make components for Boeing's (BA) Dreamliner, which is scheduled to begin production next year. They also have a wind energy play. Cramer said that the stock is cheap with a 12% growth rate, and a P/E ratio of 14, and attributed the low P/E to the fact that the stock used to be more cyclical than it is now. He put a price target of $51 on the stock, and said it could go much higher than that.
Cramer took phone calls on the following stocks:
Allegheny Technologies (ATI): Cramer said there is a glut of the type of steel this company makes, so he doesn't want you to own it.
IPG Photonics (IPGP): Cramer hasn't seen much success in the laser sector, so he gave this stock a "Don't buy" and invited the CEO on the show to explain why it should be a buy.
Teledyne Technology (TDY): Cramer likes this stock, and said you might want to take a little profit since it's up so much.
Segment 2: Interview with Fortune Brands (FO) CEO Bruce Carbonari
Cramer said that the housing market has fallen apart since he originally recommended the stock in the summer of 2006, and he then re-recommended it 3 months ago since the stock was too low. It is up since then, but not because the housing market has improved. It missed earnings and lowered guidance, so Cramer had the CEO on to find out if the stock is still worth owning. Carbonari said that their housing companies are still doing well in the repair and remodel market, and that they are happy with their decision to sell some of their wine business since it hasn't been as profitable as their liquor brands. They are also investing to move their brands into new markets as the economy slows so they are in position to grow once things improve. Cramer also asked him if they are planning any moves to take advantage of the aging U.S. population, and he said that their golf businesses are doing well, and that they are expanding those products overseas as well. Cramer ended the interview by thanking the CEO for his honesty.
Segment 3: Lightning Round!
Yingli Green Energy (YGE): Cramer said he is sticking with First Solar (FSLR), and isn't interested in any other solar play.
Nextwave Wireless (WAVE): Cramer said this stock and Clearwire (CLWR) are poisonous.
Ram Energy Resources (RAME): Cramer said that he looked at this stock before, but it was too small to recommend. It just made it over the $250 million market cap minimum, so he can say that he likes it, though he added to be careful.
Bristol Myers Squibb (BMY): Cramer said he thinks the stock is worth $28 - $30 per share, and he likes the dividend as well.
EDS (EDS): Cramer said to sell the stock because there is no upside after they accepted HP's (HPQ) takeover offer.
Hershey (HSY): Cramer recommended H.J. Heinz (HNZ), General Mills (GIS), and Pepsi (PEP) instead.
Caterpillar (CAT): Cramer likes this stock on the current weakness, and called it a "screaming buy" at $81.
DuPont (DD): Cramer is bullish on this stock.
Goldman Sachs (GS): Cramer said the CEO has constantly made money, he is bullish on him and the company, and said it will go over $200.
Segment 4: Am I Diversified?
Segment 5: Mad Money Email
GTX (GTXI): Cramer said this stock stumped him in a Lightning Round, and he did some homework and is ready to give his opinion. He said this is a very speculative biotech play, but he wouldn't have a problem investing a little but of money in it. He warned that if it reported bad news, it will go down hard.
Conceptus (CPTS): This is another stock that stumped Cramer in the Lightning Round, and he said that to stay away from this one.
American Superconductor (ASCC): Cramer is still bearish on this stock, and recommended Tetra Tech (TTEK), Trinity (TRN), Owens Corning (OC), Woodward Governor (WGOV), and Otter Tail (OTTR).
(UBS): Cramer doesn't want you to sell this stock.
Garmin (GRMN): Cramer is still bearish on this stock.
Segment 6: Sudden Death!
Athena Health (ATHN): Cramer said the medical billing companies are not doing well now, and that he is bearish on this stock.
Spirit Aerosystems (SPR): Cramer said that he likes this stock, but he likes Alcoa (AA), Precision Cast Parts (PCP), and Honeywell (HON)
Diamond Offshore (DO): Cramer likes this stock.
