Mad Money Spotlight: Monroe and O'Reilly
There will be those who benefit from the
Chrysler
bankruptcy and the general automaker collapse, according to Jim Cramer.
During his "Mad Money" broadcast Friday, Cramer said the shuttering of Chrysler and
General Motors'
(GM) - Get General Motors Company Report
dealerships across the country will boost the business of companies such as
Monroe Muffler
.
Cramer has been bullish on Monroe stock since last August, and he continues to be almost a year later, citing some data to back up his opinion. He noted that 37% of the dealers Chrysler will shut down are in states where Monroe does business. Also, same-store sales at the car-repair chain rose 10% in the most-recent quarter. And also: the company lifted its earnings forecast for the rest of the year. It now expects to earn 12 cents to 15 cents a share, up from previous guidance of 9 cents to 14 cents.
Monroe shares changed hands Monday morning at $27.02, up 38 cents. The stock's 52-week high came in April, when it touched $29.40.
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Cramer also mentioned
O'Reilly Automotive
(ORLY) - Get O'Reilly Automotive, Inc. Report
as a possible beneficiary of the dealership die-off. The Springfield, Mo.-based, auto-parts retailer has more room to grow, Cramer said, than rivals such as
AutoZone
(AZO) - Get AutoZone, Inc. Report
and
Advance Auto Parts
(AAP) - Get Advance Auto Parts, Inc. Report
.
O'Reilly stock was moving Monday at $36.31, up slightly from the previous session and not far from its 52-week high of $40.50, which it hit in late April.
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