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Apr.30
6:44 PM ET
Wednesday, 30 Apr 2008
Manufacturing's the New Tech

Industrial companies – not those in tech – are the leaders in innovation right now, Cramer said. Sure, gamers across the U.S. are probably marveling at the latest version of Take-Two’s [TTWO  Loading...      ()   ] Grand Theft Auto, but we’re talking about products the world actually needs.

Take Harsco [HSC  Loading...      ()   ], for instance. This company’s mining-services division turns its client’s waste into a high-quality cement additive. No, it’s not another pixel for your digi-cam, but the technology is a big step forward for the businesses involved – and this planet.

More than that, though, manufacturing plays like Harsco (and Eaton [ETN  Loading...      ()   ] and Parker Hannifin [PH  Loading...      ()   ]) have better organic growth than traditional tech stocks, great overseas exposure, and their stocks are cheaper on a price-to-earnings-multiple basis.

Harsco’s business model works by making other great manufacturers successful. By providing everything from scaffolding to onsite recycling to better railroad tracks, clients are able to execute at a much higher level.

And while the American economy lags the rest of the world, Harsco’s three divisions – mill, access, and minerals and rail services – earn 70% of sales from outside the U.S.

Again, the stock’s too cheap, Cramer said, trading at 15 times earnings with a 15% long-term growth rate. So consider buying Harsco. It could be the best technology company you've never heard of.

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