
MAD MONEY FEATURES
Watch the Lightning Round whenever and wherever you want.
Grab this all-in-one application and get recaps of the show sent right to your desktop or blog.
Admit it: You've always wanted to hit the "They
know nothing!" button. Here’s your chance.
Check out Cramer on set, back to school, behind the scenes and more.
Buy Cramer books, bobbleheads and other Mad Money merchandise.
Pick up the phone! It's Cramer! New Mad Money sounds for your cell phone.
Mad Money's mobile. Get show highlights sent to your phone.
One of Cramer’s hard and fast investing rules is that 20% of a portfolio can be speculative. A little risk makes the game exciting and fun. That’s important if 10-K reports, accounting statements and Microsoft Excel spreadsheets leave you bleary-eyed after a couple of hours. The potential payoff helps to keep your goals in sight.
That same anticipation also will animate a seemingly uninspired business like screw-in cartridge valves and manifolds. Yeah, we know – too exciting for words. But that’s just how Sun Hydraulics [SNHY
Loading...
()
] makes its money. Below that boring façade, though, is a booming industry.
Just so everybody’s on the same page: Cartridge valves control the force, speed and motion of fluids within a hydraulic system, and the manifolds are where you put the cartridges. The fact that Flowserve [FLS
Loading...
()
], Robins & Meyers [RBN
Loading...
()
] and Colfax [CFX
Loading...
()
] all are up today should give people an idea of how the fluid-control sector’s doing.
Sun Hydraulics is a new-tech name, making cartridge valves that are lighter, more flexible and more efficient than their cast-iron predecessors. The industrywide switch to these newer valves has spurred tremendous growth in SNHY and lent the company a good amount of pricing power. Sun Hydraulics’ cartridge valves go for as much as a 30% premium to the competition.
There are other reasons to like this stock, too: SNHY’s venture with White Oaks Controls and High Country Technologies to bring an electronically controlled integrated valve system to market; a strong export business, which makes Sun Hydraulics a good weak-dollar play; the possibility, Cramer said, of a takeover; very little analyst coverage; and a great balance sheet.
SNHY could go to $48 from $37, Cramer said, just on the strength of the company’s growth alone.
Remember, this is a small company, with just about a $623 million market cap, and the stock was up big Friday. So be smart and wait to buy – if that’s what you’ve decided to do after finishing your homework on Sun Hydraulics.
Questions for Cramer?
Questions, comments, suggestions for the Mad Money website?

