Small cap stocks are generally those with a market cap of around $2 billion or less. During the last 2 weeks, the small caps Cramer recommended on Mad Money were as follows:
Hexcel Corporation (HXL): “A rising tide lifts all boats” rings true for Hexcel Corporation, whose stock rose on the news of Boeing’s (BA) delivery of the long-anticipated Dreamliner aircraft. Hexcel provides the composite material from which the aircraft is constructed. Hexcel has a $2.11 billion market cap and trades at 22 times earnings.
KKR Financial (KFN): Cramer continued to stand by KKR Financial, stating it was inexpensive and the company seems as though it will be able to maintain the dividend. It’s an accidental high yielder due to the stock’s decline, currently yielding 9.6%. KKR Financial has a $1.3 billion market cap and trades at 3.7 times earnings.
Opko Health (OPK): This medical-device maker also has a reach in vaccines and other medical services. Cramer said it could make for a good trade, but not a good stock to own as an investment. Opko has a $1.25 billion market cap.
Harry Winston (HWD): Cramer said he still sees the stock going lower and that it may be a good speculation play. Harry Winston has a $860.66 million market cap and trades at 31 times earnings.
EXCO Resources (XCO): Cramer thinks the price of this energy stock is too low to ignore and suggests using it as an opportunity to get a position in natural gas. EXCO Resources trades at 28 times earnings, yields 1.3% and has a $2.58 billion market cap.
Entegris (ENTG): Cramer has been recommending tech stocks since the seasonal bottom in mid-September and gives this semiconductor a buy recommendation. Entegris has a $945 million market cap and trades at 9 times earnings.
Stamps.com (STMP): Cramer likes Stamps.com and thinks it has a good business model. However, he still thinks the stock has room to fall. Stamps.com has a $300 million market cap and trades at 28 times earnings.
Aruba Networks (ARUN): Cramer gave Aruba Networks a buy recommendation, stating it was a good internet commerce company that had room to run with tech’s seasonal rebound. Aruba Networks has a $2 billion market cap and trades at 32.7 times earnings.
Clean Energy Fuels (CLNE): Cramer likes Clean Energy Fuels for a play on natural gas. CEO Andrew Littlefair said the private sector is moving forward to make natural gas a significant part of the United States’ energy future and is not waiting around for the government to pass the Natural Gas Act, although it would certainly boost investors confidence. Clean Energy has a $796 million market cap.
Alerian (AMLP): Cramer loves Alerian and other master limited partnerships (MLPs) and ETFs in this market for their high dividends, which are stable based on their company structure. In order to avoid corporate taxes, their corporate structure demands they give the majority of earnings back to shareholders. Alerian yields 6.6% and has a $1.1 billion market cap.