'RealMoney' Radio Recap: ITT Spells Cleanup

ITT Industries (ITT Quote) is the "last viable post-Katrina recovery play," James Cramer said on his "RealMoney" radio show Monday.

The average municipal water treatment plant in the U.S. is more than 30 years old, said Cramer. Water safety problems exposed by Hurricane Katrina will compel municipalities to upgrade their water infrastructure, he said, adding that he believes ITT Industries is the best way to play the theme.

The company makes pumps, tubes, valves and treatment systems, and although the stock is not cheap -- it's trading near its 52-week high -- it is "too good to miss," said Cramer. The company is the "best positioned" water treatment company, with two to three times the market share of its nearest competitor, Cramer said. "They'll get the contracts," he said.

Baseball great and TheStreet.com contributor Len Dykstra joined Cramer by telephone to discuss his favorite stock picks. Dykstra highlighted Benchmark Electronics (BHE Quote), Plum Creek Timber (PCL Quote), Mine Safety Appliances (MSA Quote) and VeriSign (VRSN Quote). Cramer said he is not a fan of VeriSign, but Plum Creek Timber is an "eye opener," Cramer said.

A caller asked about Corning (GLW Quote). Cramer said he would take some profits and let the rest run. He would wait for a pullback to $19 before buying. Corning traded at $21.13 Monday afternoon.

Another caller asked about New York Community Bancorp (NYB Quote). Cramer said the yield curve is problematic for banks right now, and he believes NYB could fall to $15 to $16. NYB traded at $17.32 late Monday.

In response to a question about Montpelier Re (MRH Quote), a stock that Cramer has been bullish on and that was down more than 16% Monday, Cramer said he has looked into the situation and can find "no reason it should be down $5." He is sticking with his recommendation and thinks the stock "should be bought and bought aggressively." MRH traded at $26.09 Monday afternoon.