Mad Money

The Real OC

Focus on Owens Corning

Owens Corning is no longer just a building firm. Long known for its Pink Panther home insulation, this company is reinventing itself as a “new tech” play on composite materials with a dash of green. It’s the new OC, Cramer said. And it’s for real.

Owens Corning's composite business is growing thanks, in large part, to a stealth play on wind power. OC makes a particular composite fabric that allows big wind turbines to function. The company sold $150 million worth of this stuff to the wind market last year, and the CEO has said he expects the business to keep growing.

If you’ve been watching Mad Money, you know that wind is one of Cramer’s favorite alternative energies. He thinks the entire wind complex is poised to climb higher, and he’s not alone. The Department of Energy just said that wind could provide up to 20% of the nation’s power in 20 years. If that’s right, the OC should be a clear winner, Cramer said.

Cramer would be more worried about the housing exposure if OC didn’t just report another great quarter. It should also be pointed out that the overall company is now over 40% levered to foreign markets compared to just 12% overseas exposure in 2006. Talk about rapid adaptation.

The bottom line is that OC isn’t just a play on home construction anymore. Its composite business coupled with the wind power kicker is exactly what Cramer wants right now.

Cramer recommended two other “new tech” stocks Monday. Check out his calls on Emerson Electric and Colfax.

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