This Day On The Street
Continue to site
ADVERTISEMENT
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: A Hope-Filled Rally

But Cramer said Generac is now too expensive, which is why he likes Briggs & Stratton (BGG - Get Report), a maker of engines for generators as well as for a majority of lawn and garden equipment.

Cramer said Briggs is far from a pure play on generators because the company only derives 10% of its sales from them, but it does have many other factors pulling in its favor. He said the company reported a disappointing quarter on Oct. 18, in part from this season's drought, which curtailed many lawn and garden projects. But with the turn in housing at hand, Cramer said now might be bottom for the company.

Most lawn and garden equipment gets replaced every seven to eight years, he added, and with the peak in 2005, that replacement cycle should just be getting underway. Additionally, new environmental standards kick into effect Jan. 1, requiring outdoor engines meet tougher emission standards. That will do away with a lot of cheaper competition as only better engines will make the grade.

Briggs & Stratton has 40 new products hitting store shelves next year and has been aggressively cutting costs. It also sports a 2.5% dividend yield.

Driving the Market

The U.S. rental car market is back, Cramer told viewers. That's why Hertz (HTZ - Get Report) is up 26% for the year while Avis Thrifty (CAR) has risen by 62%. Consolidation has been key in this industry, said Cramer, which is why there are now only four major players left standing.

Of the four, Cramer said Enterprise, the largest among them, is currently private, which leaves Hertz, Avis and ZipCar (ZIP) as investable options. He said ZipCar remains a novel concept but unfortunately has nothing proprietary, which is why the company's stock has done nothing but fall since its initial public offering.

Both Hertz and Avis are cheap, said Cramer, trading at 7.2 times earnings for Hertz and 9.6 times earnings for Avis. But Cramer said that Hertz is the best thanks to the company's acquisition of Dollar Thrifty (DTG).

Cramer said the Dollar Thrifty deal will give Hertz 10,000 locations in the U.S. and afford it 30% market share. The deal will also minimize the company's ailing European division, which currently accounts for 18% of sales.
2 of 3

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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
BGG $18.48 0.00%
HTZ $16.99 0.00%
AAPL $121.30 0.00%
FB $94.01 0.00%
GOOG $625.61 0.00%

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs