The company’s Cypress Environsystems makes wireless devices to help save energy. Think remotely controlled thermostats to regulate temperature, as well as wireless gauge readers and battery monitors. Cramer said these new technologies were “a huge opportunity” before, but the potential government spending means they could be “even bigger.”
Also, while it may seem too obvious, nothing boosts energy efficiency like plain-old insulation. Owens Corning is the number-one seller in the US, and Cramer said the company could get “a huge boost” if Cash for Caulkers goes through.
If you need insulation, there’s a good chance you’ll buy it at Home Depot . Cramer disagreed with investors who sold the stock on Tuesday after what he called “a monster good quarter,” but that just offered the chance to buy HD at a discount. Cramer applauded the company’s restructuring and noted management’s specific mention yesterday of strength in do-it-yourself remodeling and energy-efficiency items.
The Caulkers proposal would also pay for upgrades to heating, ventilation and air-conditioning systems. Cramer said he likes Watsco as the best HVAC play because 85% of its business is residential. Plus, the stock pays a 3.6% dividend yield. Lennox International works, too, he said, though it’s a close second with 62% of sales coming from the residential market.
Cash for Caulkers could deliver a triple threat: create jobs, improve energy efficiency and save consumers money.
More importantly, though, Cramer said, “It could generate huge gains” in these stocks.
Cramer’s charitable trust owns Home Depot.
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