Stocks discussed on the in-depth session of Jim Cramer's Mad TV Program, Wednesday September 15.
Ford (F), Ford Preferred (F.PS), GM
Cramer called Ford (F) "the greatest comeback story in a generation." With GM's IPO ready to go, is Ford still the better pick? Cramer cited Ford's advantages over GM: the company, unlike GM, didn't need to be bailed out by the government, and is vastly improving its manufacturing and balance sheet. Cramer would buy Ford at $12, its current price and pointed out the company's plan to cut 40% of its production in North America and reduce by half its vehicle platforms. Ford is working on making its cars more compact and fuel efficient, and is reducing its incentives. Sales in China and India grew by 37% in August. Ford paid off $7 billion worth of debt and recently sold off another $1 billion. Cramer recommends buying either Ford or Ford Preferred.
CEO Interview: Tim Sullivan, Bucyrus International (BUCY), Joy Global (JOYG), Caterpillar (CAT).
In spite of the doom and gloom about industrials, demand from China is making mining a hot space. Together Joy Global (JOYG) and Bucyrus (BUCY) control 80% of the mining equipment industry and will benefit as miners replace old equipment with new technology. While Joy Global is the top name in the mining space, it also trades as a premium to Bucyrus, which derives 70% of its sales outside of the U.S. Last year, Bucyrus bought Terex, an acquisition that could potentially increase its earnings by 50%. The company recently beat estimates by 13 cents with a 20% increase in revenue.
Tim Sullivan discussed international expansion and the Terex acquisition, which is helping the company build its fleet of trucks and compete with Caterpillar (CAT). Cramer concluded that Bucyrus was "where the action is."
52-Week High List
Cramer noted the diversity of stocks and sectors represented on the 52-week high list on Tuesday, and feels the fact that the number of winning stocks hitting highs is a "fabulously bullish" sign.
If restaurants, apparel, machinery, truck engines, and tech are all hitting 52-week highs... can we please stop it with that double-dip nonsense and that endless negativity? Can we stop having professors on these shows who just say, 'woe is me.'
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