Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Tuesday June 10.
Cramer was critical of Fed Chairman Ben Bernanke’s tough talk against inflation, and says solving the housing crisis should be the first item on the agenda. Taking the inflation-first approach and even raising interest rates may hurt the banks and trigger a recession. He also recommends the government get rid of it wasteful ethanol policy, which is only raising prices on goods and is producing precious little fuel.
Rex Marks the Spot: Rex Energy (NASDAQ:REXX)
Cramer says it’s not enough to drill for more oil and natural gas; a company has to find new ways to extract the resources from hard-to-reach areas. His next wildcat pick is Rex Energy, which is developing technology that will more easily extract oil and natural gas, and Cramer thinks projections of a 33% success rate are too conservative. The project could create 84 million barrels and bring Rex’s stock price to $40. The company is also exploring in Illinois, Applachia, the Permian Basin and the Marcellus Shale, a natural gas hotspot. Cramer urges viewers to ignore The Street’s predictions and to invest in REXX.
New Tech Winner:Donaldson (NYSE:DCI)
Cramer’s next “new tech” pick is Donaldson, the world’s second largest producer of industrial and automotive filteration systems. The company is constantly upgrading its technology to produce smaller and more efficient filters. Cramer is bullish on Donaldson because over half of its sales are overseas and the company recently topped estimates by 6 cents in spite of a troubled U.S. truck filter market. The company reported orders for truck filters are increasing again, and the future looks bright for Donaldson.
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