Truck Demand Rising
Cramer spoke with Daniel Ustain, chairman, president and CEO of
, a stock that disappointed Wall Street when it reported a seven-cent-a-share earnings miss on declining revenues, but also one that's up 19% since Cramer last recommended it on June 2, 2010.
Ustain said that Navistar has increased production 40% from the first quarter of this year, and the company's order rate appears to be trending even higher. He said demand is coming from aging truck fleets that were not replaced during the downturn, as well as a need for new trucks that meet higher safety and environmental standards around the globe.
Ustain said to be number one in the truck market, you need both great products and great distribution, something Navistar has plenty of. He blamed this quarter's earnings shortfall on a short gap in production that was caused by the last of the company's vehicles being converted to their newest engine technologies.
When asked about rising commodity prices, Ustain said Navistar was able to pass on about 50% of the costs to customers, but has absorbed the other half through hedging.
Finally, when asked about the unrest in the Middle East, Ustain said that Navistar offers vehicles for moving soldiers and protected vehicles for military applications, and both are increasingly in demand.
Cramer continued his recommendation on Navistar, saying that only the future, and not the current earnings miss, is all that matters.
Cramer was bullish on
He was bearish on
Paramount Gold and Silver
American International Group
In his "No Huddle Offense" segment, Cramer defended his comments Wednesday advocating selling gold in the short term. Cramer said he's not abandoning gold, he's just advising traders who bought into gold on his recommendation in late January to take profits and not lose their gains.
Cramer said with governments still printing money as fast as they can, the demand for gold will be solid for a long time to come. Cramer told those investing in gold for the long term to take the short-term pain, because the long term gain is still coming.
--Written by Scott Rutt in Washington, D.C.
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