Cramer's Latest 'New Tech' Pick
Cramer’s “new tech” stocks are the Rodney Dangerfields of the market. They get no respect. Apparently Silicon Valley sees greatness only in new video game consoles, faster processors or bigger networks. Think Microsoft , Intel or Cisco Systems .
In Cramer’s view, though, these guys are missing the point of high-tech. The goal – if we may be so bold – should be to improve the quality of life for all mankind. Energy conservation, manufacturing efficiency, infrastructure building – this is where the real innovation is taking place.
But, of course, you’ve heard all this before. Cramer’s been talking about these new-tech namesfor a while. Now, he’s adding Illinois Tool Works to the list. ITW has its hands in everything from food equipment to packaging to arc welding to specialty power, and the company has the kind of earnings visibility and high growth that Silicon Valley dreams about.
Another reason Cramer likes ITW: The stock’s down 12% from its high thanks to a bidding war with Manitowoc over Enodis. Once that’s been worked out, ITW should stabilize and continue its upward trajectory. And it doesn’t even have to win the deal. A win would obviously offer certainty about ITW’s financial future, easing analysts' concerns. But a loss in the bidding war offers just as much certainty. Either way Wall Street can breathe, and the stock can move.
And move it will, Cramer’s predicting.
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