"Why trade in fads when you can invest in long standing greatness?" Jim Cramer asked viewers of his "Mad Money" TV show Monday. He said that he's tired of hearing about the Blackberry and the recently released Grand Theft Auto 4 video game. Cramer said he's more interested in what really matters to the U.S. economy. On that note Cramer recommended Emerson Electric ( EMR), calling the company "one of the top five best manufacturers in the world." Emerson, he said, is one of only a handful of innovative industrial manufacturers committed to giving the world the products it needs. "Emerson makes money in good times, and in bad," he said. Cramer said he liked Emerson's portfolio of products including its industrial automation, network power systems, appliances and tools, and climate control systems. He said the whole company is firing on all cylinders, making the products the world needs. Cramer last recommended Emerson on Aug. 24, 2007 at $47 a share. Since then, the stock is up a brisk 19%. Despite recent gains, Cramer said Emerson is still cheap. The company derives 52% of its revenue from overseas, with 30% of its revenue now coming from emerging markets. Emerson estimates free cash flow from operations to be $2.4 billion in 2008, and Cramer said at least part of that money is likely to be returned to shareholders. The company has a 2.2% dividend yield, which it has raised an incredible 51 years in a row, and also sports a stock repurchase program of 86 million shares or 11% of the company's current shares outstanding. Cramer noted that Emerson trades at just 16 times its estimate 2009 earnings, despite its 15% long-term growth rate. He said the company is trading at a discount from where it should be trading.
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