NEW YORK ( TheStreet) -- "There was a hidden bull market in today's action," Jim Cramer told his "Mad Money" TV show viewers on Thursday. He said while the averages might not show it, the industrial stocks are flying under the market's radar. Consider mining equipment maker Joy Global ( JOYG), who delivered stunning earnings that sent shares up $4 a share. Cramer said this one stock led all of the industrials higher, including names like Caterpillar ( CAT) and John Deere ( DE), two stocks which he owns for his charitable trust,
Running at CapacityIn an exclusive "Executive Decision" segment, Cramer once again spoke with Michael Sutherlin, president and CEO of Joy Global ( JOYG), the mining equipment maker and Cramer favorite that delivered stellar earnings earlier today. Sutherlin reiterated that the mining equipment business is a long-cycle business, and not one that is affected by short-term economic slowdowns. He said that global mining operations are running near capacity today, and companies are aggressively adding capacity to meet the needs to tomorrow. Sutherlin said while Japan, for instance, will be adding a lot more coal capacity soon, it's the emerging markets which are preparing to add the capacity to burn an additional 750 million tons of coal a year as their economies continue to grow. When asked about the environmental concerns surrounding coal, Sutherlin said that in today's environment, it simply isn't feasible to eliminate any fuel supply. He said the challenge is how to make coal cleaner, not how to eliminate it. Sutherlin also noted that with the high price of oil, many of the oil sands projects in Canada are once again ramping up, another growth driver for Joy Global. Finally, when asked about Joy Global's expansion into some oil and gas projects, Sutherlin said he has 22 years experience in the oil and gas business, and the two industries are similar in many ways. He said both groups operate 24/7 operations in remote locations, for example, and Joy Global has a lot of experience adding value to those operations. Cramer said Joy Global remains a great long-term play and should be a part of investors' portfolios.
Tanker Stock WarningIn the Thursday "Sell Block" segment, Cramer said it's time to steer clear of the oil tanker stocks. He said the recent Commodity Futures Trading Commission investigation into the 2008 manipulation of oil prices is the least of these stocks' worries. Cramer said tanker stocks don't trade on the supply and demand for oil. Rather they trade on the supply and demand of tankers, and right now there are simply too many ships for the demand. He said the day rates for tankers are awful, and with so many tanker companies having weak balance sheets, many might not survive. Plus, Cramer said many of the tanker companies have confusing ownership structures, making it impossible to know what you really own. Teekay Tankers ( TNK), for example, may seem attractive with its 11% yield, but shares are down 16% over the past year. Cramer said Teekay doesn't own any of its ships and instead leases them from a parent company. Crude Carriers ( CRU) is another sell in Cramer's book. He said shares of this company have fallen 29% in a little over a year. Frontline ( FRO), the company whose CEO is implicated in the CFTC investigation, is down 49% over the past year, but Cramer said Frontline could sink even lower. Of the company's 77 ships, Frontline only owns nine of them, and of those, it operates zero, preferring instead to outsource operations to a subsidiary, he said. "So the company doesn't own any ships and it doesn't operate them, what does it do?" Of the oil tanker stocks, Cramer said only Nordic American Tankers ( NAT) remains on his buy list. This best of breed company yields 5%, said Cramer, and that dividend is safe.