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Investing can be confusing. Luckily, Cramer has mapped out some road rules for all you Home Gamers trying to navigate the jungle that is Wall Street. Think of it as "Mad Money 101" –- some fundamental advice to keep in mind as you play the market. Whether you're a first time investor or a seasoned financier, it's always good to remember the basics.
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Oct.24
10:36 AM ET
Wednesday, 24 Oct 2007
In Awe of Shaw Group

There was no stopping Shaw Group after last quarter’s earnings beat. It was the biggest of the season: 60 cents a share on an expected 34 cents a share. The stock rose so quickly there was no entry point for new buyers. Then Friday’s 366-point Dow decline happened. Now this play on infrastructure, one of Cramer’s favorite bull markets this year, is on sale.

Shaw Group [SGR  Loading...      ()   ] builds power plants and is enjoying what Cramer called an “international renaissance” in nuclear power. SGR, which is contracted for the engineering, procurement and construction of these facilities, gets a boost every time China, India or any number of other countries gets approval for a new plant. They’re good catalysts for the stock, and they give investors something to look forward to.

Another plus for shareholders is that Shaw, like Google [GOOG  Loading...      ()   ] and Intuitive Surgical [ISRG  Loading...      ()   ], is cheap. The stock trades at 28 times next year’s earnings, which Cramer thinks are way too low considering the beat, with a 20% long-term growth rate. Fluor trades at nearly 30 times earnings with a 17% growth rate. There’s no way, after SGR’s quarter, that this company should be trading at a discount, Cramer said.

Lastly, there’s a chance Shaw Group could get taken over. Cramer thinks this small $5 billion company would make the perfect target as the infrastructure sector consolidates.

Investors who don’t already own Shaw Group should consider themselves lucky, Cramer said. Last Friday’s sell-off made this great stock affordable.

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