Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Wednesday, April 30. Click on a stock ticker for more analysis.
Manufacturing is the new tech, said Cramer, because companies like Harsco and Parker Hannifin make useful, innovative products and have better organic growth and price-to-earnings multiples than regular tech stocks. Cramer discussed Harsco which transforms waste into cement additives and produces scaffolding, efficient railroad tracks and many other products. The company has risen 31% since Cramer's initial recommendation in April 2007, and 70% of its business is from overseas. The company is cheap and trades at 15x earnings in spite of its 15% growth rate.
CEO Interview: William Johnson Heinz (HNZ)
Although packaged food companies are usually a buy in hard economic times, the current situation is an exception because high raw costs are hurting the food industry. Cramer used Heinz ketchup as the example of a brand that will never be replaced. In the latest quarter, Heinz' ketchup and snack foods were up 14% and its infant foods rose 17% with superb international growth. The company is set to release 200 new products, has a solid stock buyback program and Cramer thinks the stock is cheap, although it is close to its 52-week high "I wake up every day and say I have more opportunities to sell our products around t he world," said Johnson. He said he is overcoming commodity costs by introducing new premium products and a "pipeline full of good ideas." Frozen food growth is in the double-digits and Johnson says in emerging market countries (which comprise 13% of the company's sales), consumers are "crazy" for Heinz products.
CEO Dan Batrack, Tetra Tech (NASDAQ:TTEK)
Batrack discussed TTEK's breakout quarter with a 30% rise in net income, a 35% jump in revenue and a 40% increase in the company's backlog. Wind power is booming, and the company earned $170 million worth of orders in only 90 days. Batrack said TTEK is outgrowing estimates, and added, "Wind is ready to go now, without any trade offs." Cramer reminded viewers to do their homework. "I want you in a wind stock," he said.
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