In the "Executive Decision" segment, Cramer spoke with Chuck Bunch, CEO of PPG (PPG), which delivered a four-cent-a-share earnings beat when it last reported and a stock that's up 91% since Cramer first got behind the company in June 2009. PPG currently has a 2.6% dividend yield but is up just 4% since August, despite two great quarters.
Bunch said that PPG is having an excellent year, based mainly on its operating excellence He said after the recession, PPG is a leaner company with a much more productive supply chain.
Overall, Bunch said he sees reasons for optimism both domestically and abroad. In the U.S., Bunch said manufacturers are seeing better energy prices, thanks to domestic natural gas and the country's supply chains. Bunch said that U.S. manufacturing is on a "good footing," and 2012 looks even better for PPG as commodity prices continue to fall.Turning towards Europe, Bunch said that while consumer demand is weak, industrial demand is still seeing some growth. Bunch said he remains optimistic on the outlook for Europe as well. In fact, PPG is so optimistic, it continues to buy back its own shares, with the company already retiring some 7% of its outstanding shares. "We're voting with our cash," said Bunch. Cramer continued his recommendation for PPG, a great American manufacturing company.
Favorite Gold Miner PlayIn the "Executive Decision" segment, Cramer spoke with Mark Bristow, CEO of Randgold Resources (GOLD), a gold mining stock that's up 3,004% over the past decade and 42% since Cramer last spoke with Bristow on May 9. Cramer said he still prefers that investors buy gold bullion or the SPDR Gold Shares (GLD), but with Randgold looking to boost production 22% next year, this high-risk stock might be worth a look. Bristow said that Randgold is working hard to increase both its production and the grade of the gold it mines. He said the company is bringing some one of its new mines online. He said there will be more of both in 2012. Bristow cautioned investors not to evaluate gold miners of their production costs per ounce of gold. He said that gold quality differs, so using a cost per unit produced is a better metric. Bristow said that many gold miners are simply focused on producing more ounces and are not looking for quality or profitability, something Randgold does not do as it tries to separate itself from the industry. Bristow was also very bullish on the prospect of a fixed, stable dividend at Randgold. He said the company has paid special dividends in the past and would be very open to a regular dividend once the company is done growing and has reached stable levels. Randgold is focusing on profitability no matter what the price of gold may be as the world's economies fluctuates. Cramer cautioned that gold miners are risky investments, but this one remains his favorite in the group.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV