RECENT POSTS
- Cramer's Fave Rail: Union Pacific or Norfolk Southern?
- Abiomed CEO on Blowout Earnings
- Lightning Round: Cedar Fair, Paychex, Oneok and More
- Are Treasury Bonds Dead Money?
- Cramer: This Looks Like a Bull Market
- The Earnings on Cramer's Radar Tuesday
- Lightning Round: Baidu, Seadrill, Cirrus Logic and More
- Baseball Great Curt Shilling Has Game
- Why Cramer Likes Caterpillar Over Joy Global
- Cramer Pits Coach Versus Tiffany Stock
MAD MONEY FEATURES
PODCASTSWatch the Lightning Round whenever and wherever you want.
OFFICIAL MAD MONEY WIDGETGrab this all-in-one application and get recaps of the show sent right to your desktop or blog.
CRAMERS SOUNDBOARDAdmit it: You've always wanted to hit the "They
know nothing!" button. Here’s your chance.
CHECK OUT OUR PHOTOSCheck out Cramer on set, back to school, behind the scenes and more.
SHOP FOR MAD MERCHANDISEBuy Cramer books, bobbleheads and other Mad Money merchandise.
RING TONESPick up the phone! It's Cramer! New Mad Money sounds for your cell phone.
TEXT MESSAGE ALERTMad Money's mobile. Get show highlights sent to your phone.
Emerson's a Good Earner
Text Size 
Web Editor, Mad Money
Emerson Electric reported a stellar quarter last Tuesday, May 6, beating earnings per share estimates by 4 cents. Management immediately raised 2008 guidance. The good news pushed the stock up to $56, but that doesn’t seem to be enough for Cramer. During Monday’s Mad Money, he said Emerson deserves to trade at $60.
Emerson [EMR
Loading...
()
] is one of those “new tech” companies, like Eaton [ETN
Loading...
()
], Dover [DOV
Loading...
()
] and Parker Hannifin [PH
Loading...
()
], Cramer’s been talking about lately. Instead of being wowed by gadgets like Research in Motion’s [RIMM
Loading...
()
] new Bold smartphone, he’s more impressed with inventions that fuel the strong global economy. Emerson plays its part by boosting efficiency in everything from telco networks to nuts-and-bolts manufacturing.
Why’s Cramer so bullish on EMR? Three of the company’s most “new tech” divisions were up anywhere from 15% to over 20% for the quarter. Then there’s the fact that Emerson gets more than half its sales from outside the U.S. And the $2.4 billion in free cash flow expected this year should go toward buybacks and dividends. All that and the stock’s cheap, too.
If Emerson can produce these kinds of numbers during a tough economy, imagine what the company’s capable of during good times. And those good times will come, Cramer said. So maybe it’s a good idea to buy some EMR while it’s still trading at a discount.
Cramer recommended two other “new tech” stocks Monday. Check out his calls on Owens Corning [OC
Loading...
()
] and Colfax [CFX
Loading...
()
].
Questions for Cramer?
Questions, comments, suggestions for the Mad Money website?
Data is a real-time snapshot *Data is delayed at least 15 minutes
