Cramer's 'Mad Money' Recap: Going With Boeing

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Buy Boeing (BA Quote) because it is going to win in its "historic confrontation" with its union, said Jim Cramer Wednesday on his "Mad Money" TV show.

The CAT Came Back

Cramer said Boeing is reminiscent of Caterpillar(CAT Quote) in the early 1980s when it struck a "death blow" to its union. Prior to that, Caterpillar's stock had done "nothing" for 20 years.

In 1984, CAT won a standoff with its union, and the stock hasn't looked back since, he said.

Two companies that have lost repeatedly in negotiations with their unions are Ford (F Quote) and General Motors (GM Quote), said Cramer, and that's why those companies have a hard time making money.

Cramer said Boeing "doesn't want to be GM or Ford. It wants to be CAT, and that makes me want to own the stock."

Cramer believes that Boeing is on the verge of a multiyear up cycle in aerospace and that its stock is set to soar if it prevails over its union.

Chemical Reactions

There are situations when you need to own a stock, said Cramer. A company taking on its unions, such as Boeing, is one. Another is when a company's competitors are about to go belly up.

Jarden (JAH Quote) fits that description as well as Lyondell Chemical (LYO Quote).

Hurricane Katrina hurt many of Lyondell's competitors, but Lyondell was not affected. It may be the "smartest" Hurricane Katrina play, said Cramer. Lyondell will get more orders and will be able to raise prices -- both of which should translate to higher earnings and a higher stock price. "You need to own Lyondell," said Cramer.

A caller asked about Clean Harbors (CLHB Quote) as a Hurricane Katrina cleanup play. Cramer said he would ring the register as the stock has already priced in "all the good news."