Cramer's 'Mad Money' Recap: Textron's Overlooked Business

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"Even a wrong idea can lead us to a great stock," Jim Cramer told viewers of his "Mad Money" TV show Tuesday.

A viewer recently asked Cramer whether Textron (TXT Quote) was a buy based on its EZ-GO golf cart business. Cramer disagreed with this thesis, but he came to like Textron for other reasons.

Textron is down almost 27% since early December as Wall Street worries over the company's financial division have been mounting. But Cramer says investors should "forget about the financial division," citing that it accounts for only 6.6% of the company's revenues. "This has been way overblown," he said.

Cramer Interviews Anadarko Petroleum CEO

Cramer told viewers to instead focus on the company's military divisions, which account for 30% of the revenue. He said a recent report from General Petraeus in Iraq that called for troop levels to remain the same throughout 2008 will help Textron's military business. The company's military-related divisions manufacture armored vehicles, security systems and high-tech weapons systems.

Cramer also liked Textron's Bell Helicopter business, as well as its Cessna aircraft division. Both divisions, he said, should see strong growth this year.

Textron recently guided down its earnings estimates, but Cramer says the company is being conservative. He expects the company to earn up to $4 a share. The company trades at just a 13.6 multiple and has a 13% long-term growth rate. "It's time for Textron," he said.

A Oil Visionary

Cramer sat down for an interview with Jim Hackett, chairman, president and CEO of Anadarko Petroleum (APC Quote), a man whom he described as "the best visionary in the oil industry."

Hackett said his company is strengthening its balance sheet to boost its exploration and drilling capacity. He said that only environmental concerns are standing in the way of U.S. energy independence.

He stressed that the natural gas industry has never had an environmental disaster. He said the country has huge untapped reserves in the Gulf of Mexico and Rocky Mountains that environment regulations will not grant them access to.

Regarding ethanol, Hackett said that "corn-based ethanol has real problems" and suggested that the U.S. should turn toward natural gas, the cleanest of the hydrocarbon fuels, to supplement its energy until science can deliver more viable alternatives.

Hackett also advocated more conservation. "We need to focus on the consumption side of the equation," he said. "To get prices down, we need to consume less."

Cramer praised Hackett for both his stellar performance at Anadarko and his vision and honesty regarding the country's energy situation.

Am I Diversified?

Cramer talked with callers in this segment to determine if their portfolios have what it takes. The first caller's portfolio included Goldman Sachs (GS Quote), Bank of America (BAC Quote), Fluor (FLR Quote), Google (GOOG Quote) and Verizon (VZ Quote).

While Cramer liked Verizon, Google, Fluor and Bank of America, he said Goldman Sachs and Bank of America are both banks. He recommended selling Bank of America and adding a defense contractor.