Cramer's 'Mad Money' Recap: The Prius of New Tech

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"Saving energy is job one at just about every company in America," Jim Cramer told viewers of his "Mad Money" TV show Tuesday.

On that point, he recommended little known Baldor Electric (BEZ Quote - Cramer on BEZ - Stock Picks) as another "new tech" company that might not be sexy, but is helping to solve the country's energy problems.

Baldor manufactures energy-efficient electric motors that help companies reduce their energy consumption, said Cramer. It derives 63% of its revenues from its electric motor division, 27% from energy transmission equipment and 10% from generators.

According to Cramer, Baldor's "Super-E" line of motors is the key to the company's success. For example, he noted, a 30-horsepower Super-E motor running continuously would save a whopping $1200 a year in energy costs. And while the Super-E typically costs 20% more than traditional motors, Cramer said, "It's just like a Toyota Prius."

Cramer said Baldor also has the 2007 Energy Bill in its favor. The bill, which calls for more energy efficient motors to be in use by 2010, plays right into Baldor's business model. The company has favorable earnings forecasts extending out as far as 2011, he said.

Baldor is not well loved on Wall Street with 16% of the company's float sold short. But Cramer said the huge negativity surrounding the stock should be seen as a positive. He said that while much of the short interest is due to the company's large debt position, management has laid out plans to reduce the company's debt to less than 30% of capitalization from 62%.

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