Cramer's 'Mad Money' Recap: Jump for Joy Global

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"Tonight, I've got two great American manufacturers that actually serve a purpose," Jim Cramer told viewers of his "Mad Money" TV show Thursday. He recommended both Bucyrus International (BUCY Quote) and Joy Global (JOYG Quote) as the next two stocks in his "new technology" series.

According to Cramer, the manufacturing sector is where the real technological innovation is happening, yet these mining equipment makers are cheaper than "traditional" tech companies despite their similar growth rates. Many U.S. manufacturing stocks are expanding internationally, and Joy Global and Bucyrus are no exceptions. Bucyrus derives 70% of sales from overseas and Joy Global gets 55% of its business internationally.

Cramer: Dow Can Hit 14,000

Both companies are levered to the coal industry, a market expected to double between 2005 and 2030. And while the U.S. may be shying away from coal, the rest of the world just can't get enough, says Cramer. "There's a great global boom in mining and minerals," he said.

Cramer cited China as one international venue that's ripe with growth. Joy Global currently has one factory in China and is in the process of building two more. Bucyrus has also just entered into a joint venture to build its first plant in the country.

But Cramer warned that now's not the time to buy either of these names. "Both of these stocks are up a lot," he said. With commodity prices in retreat, Cramer said both stocks will come down and be cheaper in the upcoming weeks.

While Cramer likes both companies, he favored Joy Global as the safer investment, calling Bucyrus the riskier play -- with potentially the higher reward. Joy Global, he said, trades at 17.6 times its earnings with a 17.5% long-term growth rate, while Bucyrus trades at 19 times its earnings with a stellar 31% growth rate. Joy Global however, derives 62% of its revenue from after-market sales and is therefore not as levered to new coal projects as Bucyrus.

Poultry Power

Cramer welcomed Richard Bond, president and CEO of Tyson Foods (TSN Quote) to the show to discuss his recent comments on U.S. policies toward ethanol.

On Tyson's most recent conference call, Bond lashed out at the government's stance on ethanol and confirmed Cramer's views that the mass diversion of corn toward the alternative fuel is sparking a worldwide food shortage.

Bond said his earlier remarks were "the plain truth." He said that no one in his industry was ever consulted about what ethanol would do to food prices across the globe. He warned that his industry hasn't even felt the full effects of rising corn and soybean prices, and that consumers will undoubtedly be paying more for food staples in the future.

Bond said simply that "good foods need to be reasonably priced." He called the unprecedented rise in raw food costs "unintended consequences" of an honorable goal. He supported the country's desire to reduce its dependence on oil, but said that raising food prices wasn't the way to do it.

Cramer commended Bond for his honesty and willingness to take a public stand on what he too feels is a misguided policy. He called Bond and Tyson Food "a winner in his book."

Sell Block

"With very few exceptions, technology stocks have stopped being innovative," said Cramer in this week's "Sell Block" segment. He recommended selling all of what he now calls "old tech," including stocks like Intel (INTC Quote), Seagate (STX Quote) and Cisco (CSCO Quote).

Instead, says Cramer, the markets are now looking toward "new tech", companies that are truly innovating, companies like Eaton (ETN Quote), Parker Hannifin (PH Quote) and Joy Global.

According to Cramer, every "high-tech" company now falls into one of two categories, ones that make the workforce more productive, like Salesforce.com (CRM Quote) and Oracle (ORCL Quote), or stocks that make music, games and cell phones, like Take-Two (TTWO Quote) and Microsoft (MSFT Quote). "These categories have all gone stale," says Cramer.

Cramer said the market is now looking toward the true innovators, manufacturers that use technology to solve real problems, problems like global warming and the growing food and energy shortage. "Have the traditional technology companies really developed anything innovative since email," Cramer asked?

"People care about solving real problems," said Cramer, "and that's why the new tech is the place to be."

Genesis Guesswork

Cramer welcomed John McMahon, CEO of Genesis Lease (GLS Quote) to the show to find out why this Cramer-recommended stock is now down a crushing 49%.

McMahon said he felt bad for investors suffering a loss from owning his company, but reiterated that nothing in their business has fundamentally changed in recent months. He explained that much of the uncertainly surrounding Genesis' stock comes from funding concerns and a lack of understanding about aircraft leasing.

According to McMahon, Genesis is fully funded with a $750 million credit line available to it. He reminded investors that Genesis is not an airline, they simply own the planes.

Cramer admitted that he just doesn't have a good handle on Genesis and is no longer recommending the stock.

Lightning Round

In the Lightning Round, Cramer was bullish on Wal-Mart (WMT Quote), Costco (COST Quote), TJX Companies (TJX Quote),

Urban Outfitters (URBN Quote) and Marvel Enterprises (MVL Quote).

Cramer was bearish on Callaway Golf (ELY Quote), Cato Corp (CTR Quote), Melco PBL Entertainment (MPEL Quote), International Game Technology (IGT Quote), Las Vegas Sands (LVS Quote), Wynn Resorts (WYNN Quote), Penn National Gaming (PENN Quote), Sapient (SAPE Quote) and CapitalSource (CSE Quote).

Want more Cramer? Check out Jim's rules and commandments for investing by clicking here.

For more of Cramer's insights during the Lightning Round, click here.