Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Wednesday May 14.
Woodward Governor (WGOV)Cramer says WGOV is “levered to everything that’s working” and has beaten estimates six consecutive times. The big news for WGOV is its wind power business which is growing an amazing 150% and recently added a Chinese turbine producer and is constructing a new factory in Colorado. The company is also employing cutting edge technology to reduce emissions and to make engines more efficient. Cramer notes the stock is trading at just 18 times earnings compared to its 12% growth rate, and thinks at $35, the stock is too cheap. He predicts WGOV will hit $53.
CEO Interview: Bruce Carbonari, Fortune Brands (FO)
While FO missed its estimates by three cents a share and lowered its guidance, the company is still “riding the rhythm” of the troubled housing market, and Carbonari says 67% of its home products are sold to the less volatile remodeling market. Recently, FO sold its wine business to Constellation Brands, and Carbonari says he is focused on organic growth and developing brands rather than on acquisitions. He discussed the company’s success in its golf segment and says the sport is growing domestically and internationally.
When a viewer asked Cramer about AMSC for wind power, he said the company was not strong enough. Cramer recommends TTEK as a speculative play, OC for composite materials, WGOV and TRN. Cramer told another viewer to be careful with speculative stock GTX and would stay away from CPTS. While a final viewer was enthusiastic about GRMN’s new running watch, Cramer says he is not yet bullish on the stock.
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