You haven't missed the ethanol train, Jim Cramer told "Mad Money" viewers Monday, even though the word is out that it's the fuel of the future. Even Democrats and Republicans "are in total agreement on this issue," he said. Previously, Cramer had recommended The Andersons ( ANDE - Get Report), Archer Daniels Midland ( ADM - Get Report) and Agco ( AG - Get Report), which reported a blowout quarter. So what's left? Cramer said to take a look at MGP Ingredients ( MGPI - Get Report). It thinks that it's a food company, but its food division is not making any money, he said. The potential lies in ethanol. MGPl uses corn and processes it into ethanol -- it blends the corn with residual starch from the company's wheat protein and starch-processing operations. The company's last quarter was very bad because it was crushed by natural gas prices. And Cramer added that Wall Street was very critical of the fact that the company considers its loss-making division its main business and its ethanol division a side project. But natural gas prices have fallen through the floor, and ethanol demand has boosted the company's bottom line, Cramer said. Plus, he said that the ethanol industry sets new production records every month and that the higher demand should continue. "Some commodities have pander power ... meaning they have so much political appeal that politicians will keep plugging them no matter how economically unsound the idea may be," Cramer said. And he said that ethanol is "the king of pander power," with environmentalists who hate fossil fuels and Republicans from states that grow corn and wheat both supporting its production and use. Only oilmen don't like ethanol, said Cramer. And with this much pander power he said that there needs to be some ethanol pin action.
Good News BearsArcher Daniels Midland reports earnings tomorrow; and Cramer said that if other high-flying stocks are any indication, ADM will fall after reporting earnings. We saw this happen to companies including Valero ( VLO - Get Report) and Conexant ( CNXT), he said, because these stocks were up so much ahead of earnings that people took profits on the good news. "If you waited until a day after any of these stocks reported, you would have found a great entry point," he said. "Let ADM report ... let them be taken to the woodshed and then buy the stock when it's cheap."
'Comeback Player of the Year'After a poor quarter, it seems that American Standard has turned the company around in an unbelievably short period of time, Cramer said. Cramer welcomed CEO Fred Poses to discuss his company's quick recovery, a turnaround that's prompted Cramer to label the stock Comeback Player of the Year. American Standard is a fundamentally strong business, Poses said, which allowed it to bounce back from a hard quarter, post great growth in the first-quarter and see continued strength in its air-conditioning business. He added that his company took a beating because its bath and kitchen business had a tough second half of the year in 2005. American Standard understands many of its mistakes in that unit and has made positive changes, Poses added. The company is one of the largest buyers of zinc, copper and aluminum -- the prices of which are soaring. Cramer asked how American Standard managed to make its quarter, given that raw costs have gone up so much. Poses said that the move has been delayed but that his company and the industry as a whole have begun to pass costs on to consumers. To view Cramer's interview with Poses,
BullishCramer was bullish on Raytheon ( RTN), Flextronics International ( FLEX), Agilent ( A), Red Hat , Goldman Sachs ( GS), Ceradyne , Headwaters ( HW), Chartered Semiconductor Manufacturing , Informatica ( INFA), Home Depot ( HD), First Data ( FDC), Manitowoc ( MTW)and Oshkosh Truck ( OSK).
BearishCramer was bearish on Sanmina-SCI ( SANM), VA Software Evergreen Solar and InterDigital Communications ( IDCC).
For more of Cramer's insights during the most recent Lightning Round,