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Jim Cramer is revved up about
, not for its fiber-optic or LCD businesses but rather for its little-known diesel emission filtration business, he told viewers of his "Mad Money" TV show Tuesday.
Cramer said new, tougher diesel emission standards go into effect in 2007, and products that help reduce diesel emissions should be a billion dollar market by 2008. Corning should garner a "huge chunk" of that market, he said.
Five years ago, Corning was a fiber-optic business with an LCD business on the side, said Cramer. Now it's an LCD business with a fiber-optic business on the side. In five years, Cramer believes Corning will be a clean diesel company with an LCD business on the side.
Investors aren't yet factoring Corning's diesel emissions business into estimates, said Cramer, and therein lies the opportunity. The "stock's too cheap on the out years," he said.
In response to a question about
, Cramer said he liked Cummins as a play on this year's diesel truck replacement cycle as truckers look to replace their trucks before the new regulations go into effect.
SiRF Garmin Wave
interview Friday on "Mad Money,"
CFO Kevin Rauckman told viewers business is great. That makes Cramer want to buy the stock of
, which makes chips for Garmin's GPS systems.
Cramer said buying Garmin's stock off of Rauckman's interview is too obvious. Everybody knows Rauckman said business is good, he said. But, looking for a derivative play like SiRF is a good trade because it "takes longer for the market to work that through."
In response to a question about
, Cramer said he believes this holiday season is shaping up to be a "GPS Christmas." Both NovAtel and Garmin should work, he said. But, his favorite play it is SiRF because it makes GPS chips for a number of manufacturers, he said.
Greenberg's Red Light, Green Light
senior columnist Herb Greenberg joined Cramer to talk about
Greenberg raised a red flag over the sudden retirement announcement of FoxHollow CEO Robert Thomas. Greenberg said Thomas is just 44 years old and "loved the company." Greenberg believes there is more to the story, saying FoxHollow cut guidance last quarter and that Thomas may have brought in too many sales people.
"That does sound pretty bad. I'm giving that a bear," said Cramer.
Commenting on Eli Lilly, which recently increased 2006 guidance, Greenberg said the increased guidance hinged partly on lower growth in R&D spending, a lower tax rate and a stock buyback. The company is also counting on new antidepressant drug, Cymbalta, which Greenberg called a "stalled product." Sales of Zyprexa are slowing, he said, and Zoloft comes off patent in June 2006. "That Cymbalta's really gotta work," he said.
Finally, Greenberg said Merge Technologies announced "fabulous, better-than-expected" earnings and raised guidance. But, it turns out 39% of its sales came from one customer, said Greenberg. "Any time you have that kind of concentration, you have to be careful."
"That's too much," said Cramer, adding he agreed with Greenberg caution on all three stocks.
Franklin's International Fare
Cramer is bullish on mutual fund company
because the stocks of fund companies have outperformed the market over the past several years, said Cramer. Franklin, which is best of breed, has the added bonus of having about 40% of its assets in foreign investments, he said. That's a plus for those looking to add international exposure to their portfolios.
Cramer also likes Franklin because it may repatriate $2 billion next year, which would allow it do acquisitions, he said. Acquisitions are good in the mutual fund business because the added costs are "next to nothing."
Finally, Cramer said Franklin has had a big run, so consider waiting for a pullback before buying. And, if the market begins to do poorly, sell the stock, as mutual fund investors would likely begin pulling money out of Franklin's funds, which would be bad for the stock, he said.
Cramer was bullish on
Sirius Satellite Radio
United Parcel Service
Procter & Gamble
Cramer was bearish on
For more of Cramer's insights during the Lightning Round, click here
At the time of publication, Cramer was long GameStop, Motorola and Procter & Gamble.
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