FEATURED SLIDESHOW
Who Is The Worst CEO?Mad Money needed new inductees for its
Wall of Shame, so we asked viewers for
nominations.
RECENT POSTS
- 4 Enemies of Bull Markets
- Experiencing Technical Difficulty?
- The Importance of Good Breadth
- How Big Money Rules the Markets
- Follow the Leader
- Mad Mail: Chesapeake Energy Is Hiring?
- Lightning Round: Royal Dutch Shell, Bank of America, RF Micro Devices and More
- Lightning Round OT: Harley-Davidson, Heartland Payment and More
- Cramer’s Christmas List
- Cramer: This Stock Offers ‘Plenty of Upside’
Text Size 
Last night, a caller asked about Spirit Aerospace [SPR
Loading...
()
]. Cramer was stumped.
He didn’t know Spirit, even though it’s one of the key suppliers of Boeing’s [BA
Loading...
()
] Dreamliner. The stock came public last year, and Cramer closed his eyes to it because it was a private-equity deal, and like everyone else, he had become convinced that the private-equity guys were just a bunch of rip-off artists. But this doesn’t seem to be the case with Spirit.
After doing some intensive homework, Cramer is ready to recommend Spirit as a buy. It’s the only really pure play on the success of the Dreamliner because the company has almost no military exposure, Cramer said. Spirit was actually a part of Boeing until it was sold off two years ago as an attempt on Boeing’s part to get its costs in line. But the company still supplies nose fuselage, wing parts and propulsion systems to BA. And with the Dreamliner looking like a massive multiyear success story, Spirit has at least a half-dozen years of visibility toward double-digit earnings growth, Cramer said. There aren’t many companies out there that can say that.
Cramer thinks Spirit is just as good as Precision Cast Parts [PCP
Loading...
()
], but it sells much cheaper – at only 16 times next year’s earnings. This is partially because the company is so new and unseasoned that it has gone relatively unnoticed by Wall Street. And now that Spirit is its own entity and isn’t controlled by Boeing, it is poised to get business from an old competitor: Airbus, which is following Boeing’s lead by outsourcing its manufacturing.
Aerospace remains in full bull mode, Cramer said, so you don’t need to worry about the massive run in the stock since the IPO. Spirit had a big secondary that drove the stock six points lower, so the overhang is done, too.
Looking ahead, Spirit reports earnings in a couple of weeks. Cramer recommends putting half a position on before the report, and then if there is a sell off because of caution about how the Dreamliner could always be a bust – which is highly unlikely – you can buy the rest lower.
Bottom Line: Cramer doesn’t know everything, and he’ll admit it when he’s ignorant. He’s happy to revisit his shame with Spirit Aerospace and tell you it’s a buy.
Questions for Cramer?
Questions, comments, suggestions for the Mad Money website?
Data is a real-time snapshot *Data is delayed at least 15 minutes