Mad Money Recap

Return to Article

Cramer's 'Mad Money' Recap: Boeing Brings Bounty

TheStreet.com Staff

Click here for an archive of Cramer's "Mad Money" recaps.

"If you're looking for hidden environmental stocks, look no further than the suppliers of Boeing (BA)," Jim Cramer told viewers of his "Mad Money" TV show Friday.

He singled out both Precision Castparts (PCP) and BEA Aerospace (BEAV) as two suppliers for Boeing's new 787 Dreamliner that have serious upside.

According to Cramer, Boeing's new environmentally friendly Dreamliner is ushering in a five-to-seven-year aerospace bull market. During the last bull market, from 1995 to 2000, both Precision Castparts and BEA Areospace were up 550% and 228%, respectively, and Cramer says both are poised for another bull market run.

Precision Castparts supplies Boeing with engine components and fasteners for its new Dreamliner and is estimated to see up to $5 billion worth of new business from the 787. Cramer called Precision a long-term, bull market play.

BEA Aerospace makes interior components for the Dreamliner and expects to see a $1.5 billion impact from the new aircraft. "This will be huge," noted Cramer, for a company with annual revenue of only $1.6 billion. BEA also has a $2.2 billion backlog and sizeable international exposure.

When asked about Boeing itself, Cramer admitted that he was early to recommend the company last year, but he's taking another look at the company now that supply chain issues appear to have been worked out.

Come in, Cummins

"Even the least green-looking companies can make you money," said Cramer. He recommended Cummins (CMI) as his next 'camouflaged' green company.

Cramer first recommended Cummins back on April 4, 2007 at a split-adjusted $36.61 a share. Since that recommendation, shares have risen a respectable 53%.

According to Cramer, Cummins is leaping ahead of the competition by proactively responding to ever-increasing emissions standards set by governments worldwide. On average, the company's engines are 6% more fuel efficient than that of competitor Caterpillar (CAT). "Cummins is eating Caterpillar's lunch," said Cramer, noting the company increased market share from 25% to 43%. "This is the biggest share take I've seen since starting this show," he said.

Cummins trades at just 10 times its earnings and has a 20% long-term growth rate. Cramer noted that historically, the company trades at 20 times its earnings and predicted the stock could double as demand for more fuel efficient and low-emission engines increases. He recommended "pulling the trigger" ahead of the company's earnings release on Wednesday.

Discover Discovery

Cramer recommended Discovery Holdings (DISCA) as his next undiscovered environmentally friendly stock.

First recommended back on April 23, 2007, Discovery shares are up 6.2%. While that may seem like a lackluster performance, Cramer noted the Dow Jones Industrial Average was down 5.6% during the same period. Discovery was also up 42% at one point since the recommendation and Cramer said if investors has taken profits then, they would have benefited handsomely.

Cramer said he liked Discovery for three reasons: First, the company has great television channels and content that never grows old and can be aired over and over again. The company is also set to debut a new channel, "Planet Green," later this year and Cramer thinks this eco-friendly channel will be a huge hit.

Cramer also likes Discovery for its joint venture with Oprah Winfrey to launch an Oprah network in 2009. And finally, Cramer said, the recent shareholder restructuring should make Discovery's financials easier to understand and allow the company to be better positioned to have access to its cash flow.

In the "Mad Mail" viewer feedback segment, Cramer told a viewer that Ormat Technologies (ORA) is a great green energy company, but not a great green stock.

Lightning Round

In the Lightning Round, Cramer was bullish on Sirius Satellite Radio (SIRI), ConocoPhillips (COP), Occidental Petroleum (OXY), Marathon Oil (MRO), Agnico-Eagle Mines (AEM), Energy Conversion Devices (ENER), Hudson City Bancorp (HCBK), Urban Outfitters (URBN) and Apple (AAPL).

Cramer was bearish on ING Group (ING), Sirtris Pharmaceuticals (SIRT), South Financial Group (TSFG), Corrections Corp. of America (CXW) and Microsoft (MSFT).

Want more Cramer? Check out Jim's rules and commandments for investing by clicking here.

For more of Cramer's insights during the Lightning Round, click here.