Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Monday August 28. Click on a stock ticker for more analysis:
This show is a repeat of one that first aired on January 31 1005. There was no Lightening Round for August 28.
Getting Down and Dirty: Top Ten American Manufacturing Companies
Cramer explained that contrary to popular belief, the American economy is not a strictly service-oriented one. To make some real money, he said that it's important to "ignore the sirens of disillusionment and turn your attention to American manufacturing... When you see one of them take a dip, take that opportunity to buy because this is where the money will be over the long term." As these companies are cyclical stocks, it's not a good idea to own all of these stock at one time, Cramer reminded his viewers.
Fluor (NYSE:FLR): "the best infrastructure play... Fluor is a company that has money behind it and its markets are all in bull mode". Competitors include Foster Wheeler (FWLT), which Cramer said is not best of breed; and Halliburton (NYSE:HAL), which, he said, is hated by the media.
Cummins (NYSE:CMI): Cramer said it's the king of engines because its engines are everywhere. "It's like opening a PC and finding an Intel chip." The company has customers in more than 160 countries. It makes exhaust filters, a market doing well because of environmental concerns. It also has a generator business that is doing well.
Caterpillar (NYSE:CAT): "They're the acknowledged technological leader. Anything you need in construction has CAT written all over it. You know this is the best play in construction, but did you also know that this is great clean diesel play?"
Dow Chemical (DOW): He said the company is in 175 countries and has 43,000 employees. "This is a company that spends $20 billion a year on natural gas but still manages to make money. You know how they do it? They make plastic.... and it's not just plastics. It's industrial chemicals, it's the polys-- the building blocks of industry".
Deere (NYSE:DE): A company that he said has plants all over the world. "But at the end of the day, half of its 46,000 employees are in the U.S.A " And its products are excellent.
Boeing (NYSE:BA) Cramer said that if Europe didn't heavily subsidize its main competitor Airbus, Boeing would have 100% of the market share. "Right now jet aircraft are in the middle of a seven-year aircraft cycle. That means that I'm giving you another three years from this day on where BA will be a very hot stock."
Nucor (NYSE:NUE): "The biggest steel producer in America." Also the biggest recycler and no unions.
United Technologies (NYSE:UTX): A company with seven totally distinct businesses and one unified research unit. Cramer mentioned the company's main brands: Carrier for air conditioning, Hamilton Sundstrand for aerospace systems used by the military, the elevator maker Otis, and Sikorsky, a helicopter maker.
Ingersoll-Rand (NYSE:IR): He said that the company makes support equipment for mining and construction. IR products are popular in Brazil, Russia, India and China. Cramer went on to say that "this is the kind of stuff you must have when the economy's heating up. You must sell it when it starts to cool down".
Toyota Motor (NYSE:TM): Cramer reminds his audience that although this is a Japanese company, it is also a U.S manufacturer. Cramer predicts that they will probably have 100,000 people working for them in the U.S in 15 years. This company has cultivated goodwill and brand loyalty by making great cars for 30 years, he said, a claim that no U.S. automaker can make.
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