On the Line: Baldor Electric CEO John McFarland
Anywhere there’s movement there’s a motor, Baldor Electric Chairman and CEO John McFarland told Cramer Friday.
Baldor makes most of those motors – anything from ounces-heavy engines in small medical equipment to 60,000 pounders in mining and oil and gas machines.
The good things about Baldor? No exposure to the weak U.S. housing and autos markets. The company doesn’t make anything you’d find in a car or home.
Oddly, though, the stock has been underperforming. But McFarland said his company is strong. Over the past year and a half, Baldor has doubled profits and sales, achieved record margins, paid down debt and increased its global presence, the CEO said. Yet the stock is only $1 higher than where it was on Jan. 31, 2007.
“Our business is solid,” McFarland insisted.
Cramer agreed. “I am giving this the highest approval,” he said. “Stick with Baldor.”
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