FEATURED SLIDESHOW
Who Is The Worst CEO?Mad Money needed new inductees for its
Wall of Shame, so we asked viewers for
nominations.
RECENT POSTS
- 4 Enemies of Bull Markets
- Experiencing Technical Difficulty?
- The Importance of Good Breadth
- How Big Money Rules the Markets
- Follow the Leader
- Mad Mail: Chesapeake Energy Is Hiring?
- Lightning Round: Royal Dutch Shell, Bank of America, RF Micro Devices and More
- Lightning Round OT: Harley-Davidson, Heartland Payment and More
- Cramer’s Christmas List
- Cramer: This Stock Offers ‘Plenty of Upside’
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.
Text Size 
Here’s how you know when a stock has hit bottom: when even a negative earnings pre-announcement can't force the share price down. Cramer thinks Emerson Electric is a buy for this very reason.
Emerson [EMR
Loading...
()
] has its hands in everything from industrial automation to climate control to power transition equipment, all businesses you’d expect to suffer during a recession. This most recent downturn has been no different.
On Tuesday, the company cut its full-year forecast to $2.40 to $2.60 a share from $2.70 to $2.95. The CEO talked about what Cramer described as a freefall in business, and currency conversion should cost Emerson $1.1 billion in 2009. And that bottom the CEO was hoping for in early 2010 won’t happen until the middle of that year, he said, and a full turnaround might not arrive until 2011.
What did EMR do in response? Nothing. The stock held flat. Cramer said that’s a much-desired sign of capitulation. The company’s fair-weather investors have cashed out and the remaining shareholders are in it for the long haul. This is exactly the kind of stock you want right now: those that refuse to go down despite bad news, largely thanks to a dedicated shareholder base.
Cramer likes Emerson’s dividend, too. The 2009 yield is expected to come in at 4.3%, and 2010 at 4.4% because of a dividend boost. This kind of payout can’t be ignored given that 40% of the historical average annual return from stocks has come from their dividends.
Emerson is done with its decline, Cramer said, and now the company is paying its investors to wait for a rebound. This company is solid, and he thinks the stock is a buy.
Questions for Cramer?
Questions, comments, suggestions for the Mad Money website?
Data is a real-time snapshot *Data is delayed at least 15 minutes