'Mad Money' Spotlight: Cramer Kicks Zoltek

Click here for an archive of Jim Cramer's Mad Money recaps. Click here to get Jim Cramer's Mad Money Post Game video exclusively on TheStreet.com.


If you are looking to beef up your retirement account, steer clear of Zoltek ( ZOLT), Jim Cramer advised during his "Mad Money" segment on Monday.

Zoltek makes carbon fibers for aircraft brakes and industrial applications including wind energy and deep-sea drilling. While there is potential for the company to resume growth, right now there is little stability in the sector.

During the first quarter ended March 31, profit plunged 89% to $473,000, or 1 cent a share, compared with $4.3 million, or 13 cents, in the year-ago period. This drastically missed analysts' forecast of earnings of 9 cents.

Sales also tumbled 27% to $36 million from $49.6 million last year.

Shares of the company have been trading between $4.29 and $26.08 during the 52-week period, and closed down 4% on Monday to $9.15.

Those who might be swayed by the company's involvement in green development, must also consider that the uncertainty over governmental financial support for wind power has stunted the movement.

"New wind-farm activity has slowed as developers, wind-turbine equipment manufacturers and their financing sources are waiting to see what government benefits can be expected," CEO and Chairman Zsolt Rumy said in a statement. "Although project cancellations are very uncommon, a number of them are on hold until the economic uncertainties are cleared up."
Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

If you liked this article you might like

CFIUS Back On The Radar With IBM, Zoltek Deals

Stock Futures Fall Amid Budget Jitters, J.C. Penney Plunges

Trade-Ideas: Zoltek Companies (ZOLT) Is Today's Pre-Market Mover With Heavy Volume Stock

The Deal: Japan's Toray Industries Buys Zoltek for $584M

'Mad Money' Lightning Round: Cisco Is Smokin'