This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Cramer's 'Mad Money' Recap: Sparking a Comeback

When asked about the Chinese market, Sutherlin explained how his company uses China's electrical generation numbers as a gauge of overall economic activity. He said the Chinese demand for electricity is growing between 5% and 6% at the moment, which is down from the 10% to 11% levels they were seeing. But after a very light spring, demand has picked up over the summer and looks good for the winter months.

Sutherlin also said that while coal-fired generators are becoming an endangered species here in the U.S., around the globe there are still hundreds of projects being built. The U.S. is also ramping up its export abilities to be able to meet that demand.

Cramer said while it still may be early for Joy Global, past performance shows that investors who get in early are the most handsomely rewarded.

Two Companies in One

Sometimes it doesn't matter how good a company is, if it's packaged wrong for investors it will never receive the value it deserves. That's why Cramer is such a fan of breakup stories, companies with disparate businesses that could unlock tremendous value if only management would decide to split themselves up.

Such is the case with Manitowoc (MTW - Get Report), a company that has two very different businesses under one roof.

One half that is an old-school crane business. The company makes everything from giant tower cranes to boom trucks, all of which are levered to construction and, therefore, economic growth. But the other half of Manitowoc is restaurant equipment, where the company makes things like fryers, grills and ice makers for the food service industry. That business is not cyclical, which means it appeals to a completely different investor base.

Cramer said using conservative estimates, Manitowoc's crane business could be valued at $2.5 billion, while its red-hot food service business could fetch an additional $2.5 billion. That means as a breakup possibility, the company is worth up to $5 billion.

That's far more than the $3.9 billion the market is giving the combined company, noted Cramer, and represents a 28% premium over today's prices. If management were to pull the trigger on a breakup, shareholders could profit by $4 a share almost overnight.
2 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
FRAN $16.60 0.00%
JOY $21.30 0.00%
MLNX $43.25 0.00%
MTW $5.70 0.00%
AAPL $93.74 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs