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Cramer: Playing the Appliance Rally?

Friday, 8 Jan 2010 | 3:12 PM ET

“This is an appliance rally,” Cramer said during Friday’s Stop Trading!. “And we have to take that for what it means, which is Whirlpool and Jarden.”

Whirlpool is a big-appliance maker, and Cramer pointed to strong sales in Sears stores. As for Jarden , this company sells smaller units, such as coffee makers and toasters, “and business is smoking,” the Mad Money host said.

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“Jarden is going higher,” Creamer said, “They could pre-announce better-than-expected” earnings.

Many investors may not recognize the Jarden name, but they should know Jimmy Buffett Margaritaville Margarita Machine, Mr. Coffee coffeemakers, even Rawlings baseball gloves and Bee or Bicycle playing cards. The products control a good amount of space in stores like Target , Cramer said, and it’s a big reason he likes the stock.

Investors had been shorting Jarden, thinking the company was still on an acquisition spree. But that spree has ended. Now Jarden is generating a lot of cash, it has since cleaned up its balance sheet, and the company is “really well run,” Cramer said.

“People should look at it again,” he said. “It is a growth story.”

VF Corp. , maker of The North Face outdoor wear, isn’t up as high as Cramer would expect given the frigid weather lately hitting the US. He doubted whether investors knew that the apparel maker’s products were sold out of stores. He called VFC “the easier play than buying a retailer” in expectation of greater sales.

Joy Global , Bucyrus International and WellPoint are “winning stocks that no one believes in,” Cramer said. He said these three were cheap and headed higher.

Dana Holdings operates a “really fabulous” auto-parts business, Cramer said. He seconded a bullish report on the company from Goldman Sachs, saying it was “a must-read by everybody who wants to know what’s going to be hot in 2010.”

Lastly, Cramer said that in steel Nucor was “the best play.” He called the group “inexpensive,” especially if the US stimulus spending on infrastructure kicks in.

Cramer's charitable trust owns VF Corp.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

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

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