Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program,Thursday April 24. Click on a stock ticker for more analysis.
Trinity (NYSE:TRN) While Cramer believes in the future of wind power, companies which produce it can be as invisible as wind itself and are often buried within other companies. Cramer was not bullish on Trinity as a rail play, but after delving deeper, says he likes the company as a wind play, since Trinity builds wind towers and is set to construct a new tower factory in Mexico. While wind power comprises only 6% of the company's business, Cramer believes this should jump 10% this year. He said Trinity is like Apple, which was thought to be merely a PC maker before its potential for producing something as innovative as the iPod was finally realized. One obstacle is tax funding for wind power is about to expire unless a new agreement can be made, but Cramer thinks a Democratic victory will almost guarantee a renewal. Currently TRN trades at just 8 times its earnings and is down 41%; Cramer says TRN is a "steal."
Otter Tail (NASDAQ:OTTR)
OTTR is the head rather than the tail of the wind sector, and Cramer says a spinoff of DMI, its wind business, could double the stock's value. DMI is "on fire" and has grown 63%. The company has a $289 million backlog and 18% market share. Cramer predicts a spinoff of DMI could be worth around $37 a share. While Cramer likes DMI, he would be careful with parent company OTTR and would use limit orders when buying. He cautioned against buying OTTR at over $37 a share.
Cramer placed himself on the Sell Block as a punishment for not recommending Covanta which jumped from $25 to $30. However, it dropped $1 on Thursday to provide a buying opportunity for those who missed out. CVA has 50% market share in the waste-to-energy business and the company has expanded into Asia. Cramer said he missed the call because he "wasn't a big fan" of Sam Zell, who bought the company out of bankruptcy in 2003. However, Cramer repented for his error and said CVA is a buy.
CEO Interview: Dan Dimicco Nucor (NYSE:NUE)
Dan Dimicco said these are the "best of times" for steel since the U.S. no longer needs to be worried about being flooded with cheap imports, since the Chinese and Indians are using their own steel to beef up their infrastructure and are profiting from the weak dollar by purchasing more American steel. With supply down and demand up. NUE recently reported record earnings. While Cramer also likes U.S Steel (NYSE:X), he said NUE is "one of the great growth companies in America. It’s just too cheap.”
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