American Ecology ( ECOL) is a waste-disposal company that could make you money, Jim Cramer told viewers of his "Mad Money" TV show Tuesday. When Cramer looks at toxic waste, he doesn't see a problem; he sees an opportunity. "Hazardous waste equals mad money," he said. Cramer called toxic waste a secular growth story, which doesn't need the economy to be strong to perform well. In fact, the best thing about this stock is that it does well because of a "government-sanctioned oligopoly," he said. American Ecology didn't start getting interesting until it got into the toxic-waste-management business, which is when it started to grow, Cramer said. Only a small number of companies are allowed to operate toxic-waste management, which effectively keeps the competitors out, he continued. And the government says people have to pay a company like American Ecology to get rid of their hazardous waste.
Trash TalkAnother great hazardous-waste stock that Cramer believes is a "strong secular grower" is medical-waste company Stericycle ( SRCL).
Bed Bath From Both SidesRecently, Morgan Keegan downgraded Bed Bath & Beyond ( BBBY) based on "declining fundamentals," and at the same time Goldman Sachs upgraded the retailer based on "improving fundamentals," Cramer said. Right now, he considers Bed Bath & Beyond to be an "expensive stock based on its earnings." But even though "its concept seems to have lost its way" and the stores have slowed because of housing, Cramer said he would not sell the stock if he owned it. He urged his viewers to learn how to use these reports to analyze the stock by looking at both sides of the story. On one side, Morgan said that the company's guidance is "reasonable," meaning when it reports it won't overdeliver. Morgan also said that BBBY's buyback will be finished earlier than expected, which it views as a negative, and that the store's valuation doesn't include risk factors such as deceleration of sales growth.
Steak AppealCramer welcomed Craig Miller, Ruth's Chris Steak House's ( RUTH) CEO, to the show and asked him how the company was able to preannounce the fourth quarter up. "It starts with our brand," Miller responded. "We have a terrific brand."
Lightning RoundCramer was bullish on Disney ( DIS), McDonald's ( MCD), Omniture ( OMTR), Melco PBL Entertainment ( MPEL) and Sears Holdings ( SHLD). Cramer was bearish on New York Community Bancorp ( NYB), Sirius Satellite Radio ( SIRI), Charter Communications ( CHTR) and Conexant Systems ( CNXT). For more of Cramer's insights during the Lightning Round,
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