It's time to buy
stock again, Jim Cramer suggested in his "Mad Money" broadcast Thursday evening.
Shares of the big concrete company had been in Cramer's "sell block" since early December, when they were trading at what Cramer believed to be an overpriced $56.71. Since then, though, they've retreated back under $45, Cramer's target.
In morning action Friday, Vulcan stock was changing hands at $43.92, up $1.91, or 4.6%. It reached its 52-week high of $83 last September, and sank to its low, $34.30, in March. Shares of
, Vulcan's chief U.S. rival, were trading Friday at $80.89, up 98 cents, or 1.2%.
Vulcan, based in Birmingham, Ala., stands to benefit from an Obama stimulus package that's finally taking shape, Cramer argued. A 120-day deadline for the passage of highway-spending plans looms for many states, he said.
But other industry observers have noted that the administration's stimulus package will likely shift gears, moving away from sheer expansion and toward improved efficiency, which would still boost the business of Vulcan and its peers, but perhaps not as much as some had hoped.
Cramer also praised Vulcan's balance sheet. As of March 31, it had total current liabilities of $1.27 billion and cash of just over $47 million.
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