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"I've got a stock that's levered to everything that's working," Jim Cramer told viewers of his "Mad Money" TV show Wednesday.
He once again touted
( WGOV), which has beaten its earnings estimates six consecutive times.
Cramer last recommended Woodward on July 16, 2007. Since then, the shares have risen 17.4% in a market where the S&P 500 index has fallen 8%.
Cramer said he didn't realize just how much Woodward confirmed his thesis that high-tech companies are no longer in vogue and that what the market really wants are innovative industrial companies that solve real problems.
According to Cramer, Woodward is creating solutions and technologies that are in global demand. The company builds products to make gas and diesel engines more efficient and makes systems to reduce the emissions from aircraft turbines.
Cramer said he loved Woodward's exposure to
new 787 Dreamliner, but he was also enthusiastic about the company's wind power business.
He called the company a forward thinker that now estimates its wind power business to be worth $100 million by the end of fiscal 2008, compared to the consensus estimates of only $60 million.
To bolster its wind power business, Woodward recently added its first Chinese turbine manufacturer and is building a new factory in Colorado. He said the company's wind power business is growing at a staggering 150% a year, far more than any "high-tech" company can deliver.
Cramer: Think Infrastructure After China Quake
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Yet much of Wall Street treats Woodward as a mere cyclical company, noted Cramer. He said the estimates for the company are way to low and the analysts "just don't get it."
Woodward trades at just 18 times its forward numbers with a paltry 12% long-term growth rate. This despite the fact that the company grew at 19% this past quarter alone. "It knows how to deliver," said Cramer, who estimated the company's real growth rate at 27.8%.
Cramer said that Woodward has everything we wants from a "new" tech company, and he targets the stock at $53 a share.
Investing in Organic Growth
Cramer welcomed back Bruce Carbonari, president and CEO of
( FO), to the show to discuss his company's current outlook.
Cramer last recommended Fortune on Feb. 7. While the stock is up a modest 7% since then, the company missed its earnings estimates by three cents a share and narrowed its guidance, both of which raised eyebrows for Cramer.
Carbonari said that while his company is forced to ride the trends in the housing market, most of Fortune's products appeal to the remodeling market and not the new home market. Cramer noted that 67% of the company's home products sell into the more stable remodeling market.
When asked about Fortune's decision to sell its US wine business to
, Carbonari said the decision was made because of the shallow returns that segment provided to the company.
He also noted that Fortune's strategy is to invest in and grow its current brands, rather than purchase new brands. "Our company's best returns always come from organic growth," he said.
Finally, Carbonari discussed Fortune's exposure to the golf business. He said golf is growing both domestically and internationally and his company is positioned to grow with it.
Cramer agreed with his comments and recommended the stock on any positive news from the housing market.
Am I Diversified?
Cramer talked with callers to see if their portfolios have what it takes. The first caller's portfolio included
( SGP) and
Coeur d'Alene Mines
Cramer blessed this portfolio as diversified.
The second caller's top holdings included
Johnson & Johnson
Cramer identified two of a kind with Clorox and Proctor. He suggested selling Johnson and Time Warner and picking up
The final caller's portfolio had
Bank of America
as his top stocks.
more than Bank of America, but called the portfolio "well played."
In this segment, Cramer told a viewer that
is a speculative stock and he'd be careful.
A second viewer asked about
( CPTS), but Cramer said to stay far away from that one.
A third viewer asked about
. Cramer said that he has many favorite wind stocks, but won't recommend American Superconductor.
Finally, Cramer told a viewer that he's still negative on
since most of the company's businesses are not doing well at the moment.
Cramer was bullish on
Spirit AeroSystems Holdings
Cramer was bullish on
Cramer was bearish on
ingli Green Energy
RAM Energy Resources
Electronic Data Systems
Jim Cramer writes about all the stock trades in his charitable trust for TheStreet.com in Action Alerts Plus. Recent stocks he's traded in this account include Schering-Plough (SPG) - Get Simon Property Group, Inc. Report, Yamana Gold (AUY) - Get Yamana Gold Inc. Report and Inverness Medical( IMA).
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At the time of publication, Cramer was long Goldman Sachs, Schering-Plough and Corning.
Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money."
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