GO
Loading...

Cramer: Buy Cyclical Stocks Now

Thursday, 11 Jun 2009 | 7:11 PM ET
PPG: A Rebound Play
PPG has what we want in rebound play, according to Cramer.

Investors should start buying stocks that will bounce when the economy recovers, Cramer said on Thursday. If they wait too long, they’ll miss the move.

The gamble, of course, is always a matter of how long that recovery will take. A recession that lasts longer than expected could hurt the rest of your portfolio. So even when speculating about a turn in the economy, investors still want to play a bit of defense, such as with a dividend.

That’s why Cramer likes PPG Industries . This chemicals and specialty-chemicals maker is a classic cyclical play, but PPG also offers a 4.6% dividend yield. Between that backstop and the company’s potential to significantly grow earnings when the downturn’s done, investors might be getting the best of both worlds here.

Of course, Cramer always likes to do as much research as possible before recommending a stock. So he invited PPG Chairman and CEO Charles Bunch onto the show to learn more about the company. Watch the video for the full report.






Cramer’s charitable trust owns PPG.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

  Price   Change %Change
PPG
---

Contact Mad Money

  • Showtimes

    Monday - Friday 6p ET
  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

Mad Money Features

  • Grab the latest CNBC gear from the NBCUniversal Store!

  • Get a behind-the-scenes look at how Cramer formulates his investment advice. "Inside the Madness" is a column, which features e-mails and more with Cramer and his researcher Nicole Urken.

  • You’ve always wanted to hit the “Hallelujah!” button. Here’s your chance.