Foster Wheeler Stands Up to Crazy Hedgies

Now Foster Wheeler (FWLT - commentary - Cramer's Take) strikes back against the hedge funds gone wild with a buyback of one-eighth of the company. Last night, Potash (POT - commentary - Cramer's Take) announced a huge buyback, although with the selling pressure in that name, it won't matter. But Joy Global's (JOYG - commentary - Cramer's Take) buyback of two-fifths of the company seems like it triggered something in these commodity players' execs' minds -- maybe at last there is an end to the ridiculous nature of these totally erroneous declines.

I think McDermott's (MDR - commentary - Cramer's Take) next; it has huge cash, not a big market cap and no debt. KBR (KBR - commentary - Cramer's Take), with $1.6 billion in cash, $3 billion in market cap and no debt, is also a candidate.

Now, I know there is a perception that these stocks will have no growth as oil work inexorably back to $70 -- if it gets there -- but these companies reflect that now, and their order books make it so that someone like a GE (GE - commentary - Cramer's Take) could buy them all and roll them into a mighty infrastructure division.

I think that Ray Milchovich, the retiring CEO of Foster Wheeler, just couldn't believe that his stock could be cut in half with all of the orders he's got. Same with Joy Global.

Time to take the stocks out of the hands of the hedge fund managers gone wild -- it's ridiculous that 50% of the market capitalization has disappeared overnight without any diminishing of their core businesses and with a decline in the price of the steel they have to price to get the business.

At the time of publication, Cramer was long GE and Foster Wheeler.

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