GO
Loading...

Cramer: Stock with Plenty of Room to Run

Monday, 29 Apr 2013 | 6:16 PM ET
PPG's Moves in a Transforming Economy
Monday, 29 Apr 2013 | 6:15 PM ET
Chuck Bunch, PPG Industries chairman & CEO, discusses the company's quarterly results with Mad Money host Jim Cramer.

(Having trouble with the video? Click here!)

Cramer said some stocks are working even if they do a solid amount of business overseas. This is one of them.

"There's more to this market than the simple dichotomy between defensive domestic stocks and dangerous international ones," Cramer noted.

The Mad Money host said that's especially true in the case of PPG Industries, a Pittsburgh based specialty chemical company that does a solid portion of its business in Europe.

Photographer | Collection | Getty Images

"PPG used to be an old-fashioned chemical company with a lot of commodity business, but in recent years the company has been either selling off or shutting down the commodity side," Cramer explained. "Now PPG gets roughly three-quarters of its sales from its coatings businesses."

That coating business involves a proprietary technology applied to cars, planes, buildings, glasses, and more. The application makes things, look better, last longer; and it also reduces energy use, cuts harmful emissions and minimizes waste.

And because of the proprietary nature of the business PPG was able to shrug off weakness in Europe that dragged down results released by so many other companies.


"During the quarter, we delivered strong performance in our coatings portfolio, as we grew aggregate coatings segment earnings by 13 percent versus last year's record level," said CEO Charles E. Bunch.

The Street liked what the company had to say and after earnings, the stock marched higher, going from $132 to $140 in a single day. And the stock has continued to rally since then.

--------------------------------------------------------------------
Read More from Mad Money with Jim Cramer
Cramer's Game Plan: Midweek Sell-Off Ahead?
Trash Talk from Cramer, Really!
This Company Making Green from Going Green
--------------------------------------------------------------------

However, Cramer said that he thinks it's not too late to buy.

"With this latest move, PPG is only up about 8% for the year, so I think the stock could still have plenty of room to run," he said.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com

  Price   Change %Change
PPG
---

Featured

Contact Mad Money

  • Showtimes

    Monday - Friday 6p ET
  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

Mad Money Features

  • Grab the latest CNBC gear from the NBCUniversal Store!

  • Get a behind-the-scenes look at how Cramer formulates his investment advice. "Inside the Madness" is a column, which features e-mails and more with Cramer and his researcher Nicole Urken.

  • You’ve always wanted to hit the “Hallelujah!” button. Here’s your chance.