Roped InCramer told "Mad Money" viewers Wednesday that they should think about buying Roper Industries ( ROP), a diversified industrial company that serves a set of niche markets by making products including water meters, pumps and measuring instruments. These products are important and business is sound, he said. But it's not the only reason to buy Roper. The company was added to the S&P MidCap 400. Cramer said that he and his research team have taken a look at the last 19 stocks to be added to this index, going all the way back to October 2003. They found that since being added, the stocks for the most part have had a sustained, gradual move upward. Moreover, they have produced an average 34.66% return. There have been three exceptions: Pacific Sunwear ( PSUN), Regis ( RGS) and Southwestern Energy ( SWN). But Cramer said that 16 stocks up and three down is still a good trend. Cramer says that nobody wants to own large-cap stocks these days, despite media noises to the contrary, because mid-caps represent growth. Turning back to Roper, Cramer said that he likes the fact that the company doesn't try to expand its target market, but just captures more share in the markets they currently serve. It's cheaper for a company to sell more of a product it already sells than to design and market a whole slate of new products, he said. Plus, he said that Roper has a great radio frequency identification (RFID) company. For a pure play on water, he told a caller that he would rather go with Aqua America ( WTR), which he owns for his
Maybe You're Diversified"Diversification is the only free lunch," Cramer said. So viewers called him to play "Am I Diversified?," a segment during which they tell him which stocks they own and he says whether the portfolio's diversified enough to help protect them against different sectors and stocks moving lower. The first caller said he owned TD Ameritrade Holding ( AMTD), Seagate Technology ( STX), Southwest Water ( SWWC), Valero Energy ( VLO) and Acadia Pharmaceuticals ( ACAD). Cramer blessed this portfolio as diversified because it has a tech company, a finance stock, a refiner, a utility and a drug company. But he said he would swap out of Southwest Water and buy Aqua America. Cramer did not bless a portfolio with PepsiCo ( PEP), Sasol ( SSL), ViaSat ( VSAT), Pain Therapeutics ( PTIE) and Chesapeake Energy ( CHK), saying that Sasol and Chesapeake are both energy companies. The next caller also had overlap because he owned two energy plays, Halliburton ( HAL) and ConocoPhillips ( COP). The caller also had UnitedHealth Group ( UNH), Wells Fargo ( WFC) and Amgen ( AMGN). Cramer said he would sell ConocoPhillips and keep Halliburton, a stock that he owns for
Lightning RoundCramer was bullish on Headwaters ( HW), KFx ( KFX), Radiant Systems ( RADS), Websense ( WBSN), Symantec ( SYMC), Radvision ( RVSN), Sanofi-Aventis ( SNY), Novartis ( NVS), Matsushita Electric Industrial ( MC), Rackable Systems ( RACK), Sony ( SNE), Western Digital ( WDC), Seagate Technology ( STX), Amgen ( AMGN), XM Satellite Radio ( XMSR), Ciena ( CIEN), JDSU ( JDSU), Conexant Systems ( CNXT), Bookham ( BKHM), Finisar ( FNSR), PepsiCo ( PEP), Qualcomm ( QCOM), Level 3 Communications ( LVLT), Dynamic Materials ( BOOM), United Technologies ( UTX), Broadcom ( BRCM), Marvell ( MRVL)and Apple ( AAPL). Cramer was bearish on Google ( GOOG), Secure Computing ( SCUR)and Brigham Exploration ( BEXP). For more of Cramer's insights during the most recent Lightning Round,
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