Cramer's 'Mad Money' Recap: Water Safety

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Upgrading Water

Cities and states are likely to upgrade their water infrastructure in the wake of disastrous water safety issues exposed by Hurricane Katrina in New Orleans, said Jim Cramer Monday on his "Mad Money" TV show.

The average age of municipal water infrastructure in the U.S. is more than 30 years old, said Cramer. "It was ripe for an upgrade even before the storm." Now municipalities should be motivated more than ever to take action to avoid catastrophes in their communities.

ITT Industries (ITT Quote) is the "one stop shop" among water treatment companies, said Cramer. ITT makes pumps, tubes, valves and treatment systems; and although the stock isn't cheap -- ITT is trading near its 52-week high -- it's the company best positioned to win contracts. It has two to three times the market share of its nearest competitor, Cramer added.

"I need people to be thinking about ITT and buying it because that's the pure play that is going to get the big orders."

Tower and Powerwave

"There's always a bull market somewhere, and right now we've got a bull market in cell phones," said Cramer, who has been bullish on America Movil (AMX Quote), Motorola (MOT Quote), American Tower (AMT Quote) and Global Signal (GSL Quote).

Cramer is also bullish on Powerwave Technologies (PWAV Quote), which makes cell-phone tower antennas and amplifiers.

"Powerwave and its main competitor, Andrew (ANDW Quote) ... have been dogs," said Cramer. "Over the past few years, their performance has just been abysmal." However, Cramer believes that Powerwave has now "cleaned up its act" and will wind up with 20% market share by the end of the year -- up from 15% last year.

"I think they're wiping the floor with Andrew Corp.," said Cramer.

Powerwave's other competitors are wireless infrastructure units of much larger companies such as LM Ericsson Telephone (ERICY Quote), Motorola (MOT Quote), Nortel (NT Quote) and Samsung.