Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Thursday May 29. .
Tooling with Illinois Tool (ITW)
Cramer once again returned to the subject of industrial stocks, a sector which he has called "new tech," but unlike "old tech" the companies are more focused on solving humanity's problems than on creating the coolest new gadget. Illinois Tool produces food packaging equipment, and has arc wielding and specialty power businesses. ITW has consistently delivered great earnings, visibility and has tripled its international exposure in the last two years. Now is the time to buy ITW since it is 12% off its high due to a bidding war with Manitowoc over food equipment company Enodis. Once the war is over, ITW should jump, said Cramer.
Michael Sutherlin, CEO and President of Joy Global (JOYG)
Sutherlin discussed his great quarter following the company's earnings report on Thursday, and when Cramer asked about the company's raised guidance, Sutherlin replied the JOYG is experiencing an unprecedented demand for its mining equipment given the rise of commodity prices, which he thinks is due to real demand for raw materials rather than just manipulation by speculators. Unlike demand, hedge fund speculation is "not a significant driver of value in the long run." Sutherlin also discussed the seemingly insatiable demand for coal overseas. Cramer says JOYG is undervalued and would pull the trigger; this company's got great numbers for years and years.
Cramer revisited emerging market telecoms he recommended in February, and noted the five stocks were down an average of 12% while the S&P 500 managed to gain 1%. Cramer admitted he was too bullish on overseas telecom. In particular, TLK was hurt by its wireline business and TKC was hindered by a new competitor; both companies have dropped about 31%. Cramer would go ahead and sell these two stocks and sell the remaining three on any rise.
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