Jim Cramer's a buyer of

Bucyrus

(BUCY)

. I've been a fan of Bucyrus since I came across it in late August 2008. Back then, I grabbed the coattails of the top of the roller coaster and rode it down to $62 from $67. If I liked it then, imagine how much I like it now at $23, on its way back up?

Trading up more than 100% from its low, why is this growing company so cheap with a price-to-earnings ratio of 6.86? I've got one idea. Opportunity cost. If you want to play China the right way, right now, you have to start small and work your way up to see the big picture.

Bucyrus makes mining equipment. To set the stage, Bucyrus's P/E is 6.8 and is selling at 1.7 times book value. Let's look at some undervalued oil and coal companies that may use this kind of equipment and are less than half as expensive as Bucyrus with respect to both metrics.

Puda Coal

(PUDC.OB)

is being featured at the China Rising Investment Conference in New York on Monday. Puda Coal is a supplier of metallurgical coking coal to the industrial sector in China. The company is currently in the process of vertically integrating its supply chain. Goldman Sachs just upgraded the entire coal industry. The reason for upgrading the industry is mostly because of China. Looking at these numbers, I'm going to agree with Goldman.

Longwei Petroleum

(LPIH.OB)

is one of the leading diesel, gasoline, fuel oil and solvent oil distributors/wholesalers in Taiyuan City, China. The company's expansion is being financed through its working capital. Bank loans in China have been unbearably tough to get, so this is a strong point.

China North East Petroleum

(CNEH.OB)

is engaged in the exploration and production of crude oil in Northern China. The company just signed a contract to drill another 48 wells in the next 10 months, taking its total to 303 after the project is completed. Crunch the numbers and that's 18% growth in production in 10 months.

I could outline the advantages of

China Energy (CHGY.OB)

, but I did that recently. Instead, I'll give you a bonus pick that's American.

Crimson Exploration

(CXPO.OB)

is much cheaper than Bucyrus. It's an independent natural gas and crude oil company engaged primarily in the United States, Gulf Coast and South Texas regions.

I'm not telling you that you're not likely to make a lot of money on Bucyrus right now. What I'm saying is that if you have two opportunities, and one of them is more likely to return more money than the other, it would make sense to buy into the one with better returns, right? That said, Bucyrus, in my opinion, is definitely worth more in the long run. It's trading less than its backlog and that's pretty much sinful.

Glen Bradford owns all of the stocks mentioned in this article. Bradford is a Purdue Industrial Engineer pursuing his MBA and trading his entire tuition in the stock market as well as the tuition of his roomate. His life goals are to efficiently allocate capital: mental, physical, financial, emotional.