Cramer's 'Mad Money' Recap: Inherit the Wind Stocks

Click here for an archive of Cramer's "Mad Money" recaps.

---

"Wind power is the cheapest form of renewable energy out there," Jim Cramer reminded viewers of his "Mad Money" TV show Wednesday.

A longtime bull of the wind power business, Cramer cited a recent report stating that 30% of our nation's energy could be derived by wind power by 2040.

To help illustrate the many great companies involved in the wind power business, Cramer built a windmill from scratch, piece by piece, to show which companies make each component.

First, Cramer featured the wind tower business that makes the support structures for windmills. Here, he reiterated past recommendations of both Trinity Industries (TRN Quote) and Otter Tail (OTTR Quote) as the best stocks to own.

Cramer Interviews Trinity Industries CEO

Next, Cramer featured the windmill blades, and said that Owens Corning (OC Quote) has the best composite materials business for this high-stress application.

Cramer then focused on the nacelle, the structure that houses a windmill's turbine. Here, he identified Woodward Governor (WGOV Quote), Thomas & Betts (TNB Quote) and Kaydon (KDN Quote) as the companies to own for turbines, bearings and the other components found in the nacelle.

Cramer: Get Ready For an Energy Pullback

Finally, Cramer said both MasTec (MTZ Quote) and Thomas & Betts are the best companies for the wind power infrastructure needed to bring power from the mill to the grid.

Cramer placed all seven of these companies into what he called the "Mad Money Wind-ex," his index of wind power stocks. He said with the American Wind Energy Association's annual conference beginning in Houston next week, there should be a lot of buzz surrounding all of these names going forward.

Try Some Trinity

Cramer welcomed Timothy Wallace, chairman, president and CEO of Trinity Industries to the show to discuss his company's wind power business in depth.

Cramer last recommended Trinity on April 24, and since then, the stock has climbed for a 36.7% gain. The company reported its earnings, beating Wall Street estimates by 8 cents a share, and also announced a $1.6 billion backlog. With gains that large, Cramer asked Wallace if the good news could continue.

Wallace said that he is also very excited about his company's wind power business. He explained that Trinity not only manufactures wind towers and other components, but also transports them using the company's expertise in building specialized rail cars. Trinity also plans to open a new facility in Iowa in the next six months and should begin shipping products by the first quarter of next year.

According to Wallace, Trinity will remain aggressive in the wind power market, but overall, he sees the company as a strong, multi-industry business manufacturing everything from rail cars, to wind towers, to large propane tanks in its facilities.

Cramer reiterated his buy on Trinity, stating that the company's story just hasn't been told yet.

Selling New Tech

Cramer welcomed advertising guru and fellow CNBC host Donny Deutsch to the show to discuss his "new tech, old tech" thesis. Deutsch dismissed the notion of new tech vs. old tech and said what these new, innovative companies are really selling is the concept of saving humanity. These companies, he explained, are helping to feed the world, save it from terrorism, and help it produce more and cleaner energy.

Cramer and Deutsch agreed that the trend toward "humanity" companies is here to stay. Deutsch advised these companies to focus more on the end benefit of what they do instead of the products they sell. "If you're helping to save humanity, advertise that you're saving humanity," said Deutsch.

Am I Diversified?

Cramer played "Am I Diversified" with callers to see if their portfolios have what it takes. The first caller's portfolio included Waste Management (WMI Quote), CSX (CSX Quote), Chesapeake Energy (CHK Quote), Star Bulk Carriers (SBLK Quote) and Nordic American Tanker (NAT Quote).

Cramer said both CSX and Nordic American are transportation companies. He recommended keeping CSX and picking up a defense stock or a healthcare name to round out the portfolio.

The second caller's top holdings included UPS (UPS Quote), Pfizer (PFE Quote), Shaw Group (SGR Quote), Apple (AAPL Quote) and Boeing (BA Quote). Cramer congratulated the caller for a job well done with this portfolio.

Sudden Death

In Sudden Death, Cramer was bullish on Rosetta Resources (ROSE Quote) and Altria (MO Quote).

Cramer was bearish on Nvidia (NVDA Quote).

Lightning Round

In the Lightning Round, Cramer was bullish on Church & Dwight (CHD Quote) and Solarfun Power Holdings (SOLF Quote).

Cramer was bearish on Ener1 (HEV Quote), Activision (ATVI Quote) and Statoil (STO Quote).

---

Jim Cramer writes about all the stock trades in his charitable trust for TheStreet.com in Action Alerts Plus. Recent stocks he's traded in this account include Schering-Plough(SPG Quote), Yamana Gold(AUY Quote) and Abbott Laboratories(ABT Quote).

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