'Mad Money' Recap: Illinois Tool Nails It

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"I'm out to change the way people look at stocks," Jim Cramer told viewers of his "Mad Money" TV show Thursday.

He continued to drive home his thesis that traditional "high-tech" companies are yesterday's news, and what the world -- and the markets -- are really interested in are "new-tech" manufacturing companies working to solve the world's problems.

According to Cramer, its time to stop embracing the traditional Silicon Valley tech companies in favors of real-world manufacturers that are using technology to generate and conserve energy, bolster food supplies and solve global issues. Cramer said these new-tech companies deserve the higher P/E ratios because of their higher earnings visibility.

Cramer said he's not interested in Dell (DELL Quote), which reported its earnings this evening, but he is interested in Illinois Tool (ITW Quote).

Cramer explained that Illinois Tool's food packaging equipment business helps process and store food more efficiently, thus reducing waste and helping to feed humanity. The company also has a specialty power business and is increasing its international exposure, with foreign sales doubling over the past three years. Illinois Tool also offers investors great earnings visibility, said Cramer, due to the long business cycles in which it operates.

Cramer: It's Not All Bad

Cramer said the stock is also attractive on a valuation basis. The company is currently in a bidding war with Manitowoc (MTW Quote) for a food equipment company and is currently off 12% from its recent highs.

Cramer called the situation the perfect time to buy. He explained that as the bidding continues, the share price of ITW will remain artificially low. But as soon as the bidding is over, he predicted, ITW will return to its true multiple.

Pride and Joy