(repeat of 1/31/06 show)
"Tonight is a special show: devoted solely to my top ten American manufacturers:
Tonight, I want to tell you about something a little more long term
than my usual recommendations. This is a special show - a show
about how the United States is once again a great manufacturing nation!
If you want to try to make money in the market, you have to ignore the
sirens of our dissolution, and focus on the American manufacturers who
are taking the world by storm, gobbling up market share and basically
representing the best manufacturing in the world.
That's why tonight I give you Cramer's top ten American
manufacturers. These companies are the real big ten, and you need
to be aware of their stature.
The real money has always been rooted in manufacturing. The
companies we're going to be talking about tonight and doing well.
In fact their kicking 'BRIC' - that's Brazil, Russia, India and China.
In no particular order, whatsoever, here is Cramer's big ten list:
The Big Ten American Manufacturers!
I want you to have this list, so you know which stocks are best of
breed. These companies will turn the U.S. into an industrial
powerhouse.
#1: FLR (FLUOR CP (NEW))
[engineering & construction]
FLR is one of the best infrastructure companies on earth. Their only real rivals are BECTEL, HAL and FWLT.
Why is fluor better? FWLT
screwed up in the asbestos patch. So much as I like the company
and I do, it can't really be best of breed. HAL? Hated by
the New York Times. A high flyer. And, unless you see it
get crushed, FLR is the better value. BECTEL is private. I
mean that leaves us with FLR as the best infrastructure company for you
to buy and I want you to take a position in FLR.
FLR is known for building in dangerous places, and that is why we love FLR!
#2: CMI (CUMMINS INC)
[engine maker]
Admit that you've never heard
of Cummins (CMI). CMI is the king of engines. I consider
them indeed, the Budweiser of engines. They've got a great
generator business too.
CMI will not be as good a stock
in 2007, as it will be in 2006 because the buy in from those diesel
regulations will hit this year and not next.
#3: cat [all things that need earth moving]
This company is the king of construction. It's also the king of mining and forest equipment.
They're the acknowledged technological leader. Anything you need in construction has cat written all over it.
You know this is the best play on construction out there, but did you know their also a great clean diesel pay?
Cat also broke the union over a decade ago, which is great for you if you own it.
#4: DOW (DOW CHEMICAL)
[the best plastics company in the world]
The fourth member of my top ten manufacturers - another stinky, dirty company - is DOW chemical (DOW).
This is a company that spends $20
billion on natural gas every year, and still makes money. You
know how they do it? Because they make plastic!
Don't you dare think of any other company for this, because I think DOW is the best there is.
And it's not just plastics - it's
industrial chemicals. It's the poly's - the building blocks of
all industry - and they all come from DOW.
#5: DE (DEERE CO)
[agriculture, construction, power, forestry - anything you need to grow stuff or tear things down]
This is really pimping' all over the world. But, at the end of the day, half of their 46,000 are still in the U.S.A.
#6: BA (BOEING CO)
[the best aerospace, defense contracting company]
Ba is the biggest exporter in the
world. They're the second-biggest defense contractor on
earth. Right now, jet aircraft are in the middle of a seven-year
aircraft cycle. That means that I'm giving you another three
years, okay, from this day on, where BA will be a very hot stock.
Understand, this is the one member
of my big 10 that isn't really tied to the world economics cycle.
The aerospace cycle is a totally separate thing.
Right now, that means that BA is one
of the most ownable stocks on this list. But, at the end of the
aerospace cycle, in 3 and ½ years, you better watch out!
Sell, sell, sell!
#7: NUE (NUCOR CP)
[the best steel producer]
Nucor (NUE) is also the biggest
recycler in the country. One last great thing: none
of NUE's plants is unionized.
#8: UTX (UNITED TECH)
[technological conglomerate]
United technologies (UTX) - this company is all over the place.
Seven totally distinct businesses and one unified research division.
I need you to know what this company's levered to - they are either
dominant in each business or high quality: carrier (HAVC),
Hamilton-Sunstrand (aerospace), Otis (elevators/moving walkways),
Sikorsky (helicopter).
We've still got 3 years with aerospace, so even if we see a real
slowdown in that time period, UTX should still be able to perform.
#9: IR (INGERSOLL RAND LTD A)
[support equipment for mining and construction]
They've also make supermarket freezers, road repair equipment, security
systems. Ir is the industrial stock of industrial stocks!
This is the kind of stuff you have to have only when the economy's
heating up. You must sell it starts to cool down. See, you
don't buy and hold ir.
#10: TM (TOYOTA MTR CP ADS)
[the best auto manufacturer]
Are you going to tell me Toyota motor (TM) is a Japanese company?
Go right ahead. You're missing the point. It might be a
Japanese company, but they're an american manufacturer.
I'm willing to bet, in the next 15 years, tm will probably end up
having 100,000 people working for them in the u.s., provided tm doesn't
totally change their strategy and start making everything in china.
Tm is building a pickup truck plant in texas to keep up with
demand. Tm is the world's third largest manufacturer of
cars in unit and net sales.
Instead of opening plants in michigan, they've been going to the south,
where the cost of living is lower. And none of their workers are
unionized - because they pay well and give their workers good benefits
and job security.
So, next time somebody tells you to buy american, you buy a
Toyota! Since they are by far, the best american auto
company. They make too many here, and employ too many people!"
