NEW YORK ( TheStreet) -- "It's easy to pin today's rally on the Federal Reserve," Jim Cramer told the viewers of his "Mad Money"TV show Wednesday. He said that would be a mistake because today's rally was not a one-man show but rather an ensemble of bullish factors. Cramer noted that today's rally was born out of China, where the latest indicators are pointing to a soft landing for that economy, which is good news for stocks like Caterpillar ( CAT) and Cummins ( CMI), two stocks which Cramer owns for his charitable trust,
Barge Bull MarketCramer offered special thanks to Carrizo Oil & Gas ( CRZO) CEO Chip Johnson for appearing on last night's show. He said Johnson unknowingly identified a bull market in barges, as oil companies are using all of the barges they can find to ship oil to Louisiana. Cramer said the pin action off of Johnson's comments led him to Kirby ( KEX), our country's largest inland tank barge operator. Kirby operates 829 barges and 249 towing vessels, primarily along the Mississippi River, and derives 60% of its revenues by transporting petro-chemical products. Even with shares of Kirby near their 52-week highs, Cramer said the company is still a buy and he'd get into the stock before the company reports earnings on July 27. He said the supply for new barges is very limited, but demand is through the roof, which means Kirby should beat the estimates handedly. Kirby is also protected from foreign competition, making its story even more compelling. Kirby currently trades at just 16.8 times earnings, despite a 15% long-term growth rate. Even if shares were to return to historical averages, Kirby would trade at 21 times earnings, or $84 a share, a 45% increase from current levels.
Making Sense of Netflix's Price Hike"Netflix isn't committing suicide by raising prices," Cramer told viewers, responding to the cat calls from critics accusing the company of alienating its user base. He said Netflix has delivered a 450% gain since he first got behind the company in Octoberdd 2009 and management deserves the benefit of the doubt. Cramer said while the price increases might not sit well with users at first, as a business strategy it makes perfect sense. He said delivering DVDs by mail is simply more expensive than streaming them digitally over the Internet, so of course it makes sense to coax more subscribers into streaming by making them pay up for the old-fashioned DVD by mail service. Netflix could potentially see a 20% boost in revenue per subscriber, said Cramer, a number that would be huge for the company. He said Netflix also recently announced that its expanding into 43 new countries in Latin America and the Caribbean, a move which represents only the tip of the company's international expansion plans. "Where else are you going to get your movies," asked Cramer? He said Netflix clearly has the scale to outperform any competitor. In the long run, he said, an extra $6 a month for Netflix' service will not seem like a big deal. "People used to get milk and diapers delivered to their homes," said Cramer, "but that too got too expensive."