Wind Is In - Cramer's Mad Money (5/27/08)

Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Tuesday May 27.

Thar She Blows: Kaydon (KDN)

Cramer predicts 2009 will be the year for wind power, although the difficulty is finding a pure play on the “best form of renewable energy.” Industrial bearings producer KDN currently has a grip on half the market for wind turbine bearings, and while less than 10% of revenues come from wind, this figure is expected to double next year and triple in two years according to Cramer’s “low-ball estimates.” While KDN is nearing its 52-week high, it is trading at a mere 19 times next year’s earnings with a 14.5% growth rate, and is cheap.

New Tech Wonder: SPX (SPW) Corp.

Cramer says SPX is the ultimate new tech stock, since it is levered to things people actually need, such as clean drinking water, alternative energy and power transformers. Its four major divisions are flow technology, test and measurement, thermal equipment and industrial products and services, and Merrill Lynch recently stated SPX Corp is the “best leveraged to global power markets in our coverage universe.” Cramer is bullish on SPW, but warned investors not to pay too much for the stock, which is thinly traded.

Revisiting Russian Stocks: Mechel (MTL), Wimm-Bill-Dann Foods (WBD), Central European Distribution (CEDC), Central European Media (CETV), CTC Media (CTCM)

Cramer was happy to report the five Russian stocks he recommended on Apri 7th were up an average of 13.7% while the S&P 500 rose only 1%. Still, the mini-portfolio needs trimming, and Cramer would get rid of CTC Media because of its poor performance and because he should not have picked two media stocks. CTCM only has 12-13% market share and recently overpaid for an acquisition. Cramer would keep the rest of the Russian stocks, but would happily let CTC defect.

Mad Mail: Apple (AAPL), GameStop (GME), Nucor (NUE)

Cramer told one viewer how to play Apple on the new iPhone release: sell 25% the day before, 25% in the morning, 25% in the afternoon and hold on to the remaining 25%. He said he is less excited about GME after its disappointing conference call and thinks NUE is low enough to buy.

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Comments

[tom1234]

cramer-- cramer ---cramer --

[gebby]

cramer works for GE which is big in wind. dont believe the propaganda. wind has its place. but solar will be so much bigger.

[Uncle Bob]

You're wrong on solar. It still has a tremendous economic curve (30 years and counting) and along way to go. Wind is being built up at a much faster rate -- feel free to look it up yourself. It is "buy and homework", right, not just expect Jimmy boy to do all the work for you.

[Zoltar]

Does he really mean to sell AAPL when Steve Jobs gets out all the juicy unforeseen announcements?

How clueless and manipulator can he be uh?! He's obviouslly a shorter aiming at big personal gains on account of all the sheep losers that wag their heads to his clapping...

It's just sad

[elcopone]

Actually XXamaXX, he doesn't own a single stock except for his own company, thestreet.com. So you are wrong.

[Zoltar]

Believe you me, Steve Jobs is not just announcing a new phone, he is starting a revolutionary new era of handheld computing. EVERYBODY will want to have one of those handhelds that are Mac-easy computers and still can be carried around with you. New bigger models will be launched, covering the gap between iPod Touch and MacBooks.

AND the iPhone - with all the Mac parafernalia tagging along - will be sold in 67 countries and counting. How is that going to add up to Apple's bottomline?! Some say it will be doubling or tripling, I have no doubt about it.
People who buy iPhones, soon are buying Macs, that's why the Mac is growing @+50% yoy comparing to industry 17%. Now, Apple will sell all around the world, in places where it never sold significantly!
The iPhone subscriber market was 140 million, it's now at 700 million and there's still China & Russia to be added, the countries where most of the unlocked iPhones went to.

This is not just another run-off-the-mill event for Apple, it is as important as the start of the computer revolution was with the 1st Macintosh with the 1st GUI and mouse!

He who doesn't see that Apple is shooting to never before seen sky high prices, surpassing Google in market cap, when the market realises what's really going on at Apple is losing money big time.

Then you will blame it on Cramer. But you should really blame yourself to be listening to that lame BSitter

[Zoltar]

@elcopone

You also believe in Santa and you just can't sleep on Christmas Eve, right?!

Ahah

[papomd]

I have shares in appl. I heard the same plan to sell appl at the outcome of the june 9,2008 announcement from a fast money trader

[papomd]

now why should I be thinking about selling my shares of appl if people say it is going higher in the 200's please anybody can shed some light

[carlsbadsue]

papond......I ask the same question.....somehow, that doesn't make much sense and it would be helpful if that comment was explained. I'm sure there is more to that thought.

[turbotom]

its all about selling the news

[mojotronic]

One wind stock Cramer failed to mention is AWNE. They distribute wind turbines
and although a young company have been very profitable.