Cramer's 'Mad Money' Recap: Tracking Caterpillar

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Caterpillar (CAT Quote) at $63.16 is wrong, "a travesty of a mockery of a sham," Jim Cramer told viewers of his "Mad Money" TV show Friday.

Caterpillar, probably the single best stock people can own this quarter, has everything going for it, yet it's down 14% year over year, he said incredulously. "This is a sale on a best-of-breed stock."

Meanwhile, Terex (TEX Quote) is up. "The market is stupid," Cramer said.

Caterpillar trades like it's levered to housing, he said. But if other construction machinery manufacturers, such as Terex, Cummins (CMI Quote), Paccar (PCAR Quote) and Manitowoc (MTW Quote), are up, then Caterpillar deserves to go higher too, Cramer said.

Caterpillar is a long way from sitting on top of the world, Cramer said, so he wants market players "to ride it up." He believes it shouldn't take long for the stock to catch up and make up for lost time.

Further, people are looking at Caterpillar "all wrong," Cramer said. People should think of it as a company levered to natural resources, not to its minuscule business of new-home sales.

There are two things happening that should be sending the stock higher here, he said. First, commodity prices are on the rise. And second, the unwinding of the yen carry trade is "fantastic" for Caterpillar because this means its competition won't do as well as expected, Cramer said.

In addition, because the company has a $7.5 billion buyback, its current situation shouldn't last, he said. Either the market will take it up or it will take itself up with its huge buyback.

"The great CAT is still sleeping," Cramer said. But it should soon run.