The radical rally in the stock market ever since Election Day is powered by stocks like Agco Corporation, Jim Cramer says.
Unless you watch "Mad Money" on a consistent basis or own a farm, you may not even know Agco. It is an agriculture company that is a mixture of brands like Fendt, Massey-Ferguson and GSI.
CEO Martin Richenhagen has been steering his company quietly to accumulate castoff businesses and spend money to revitalize them. Agco has also been quietly buying back its stock on a bet that the cycle of agriculture was ready to turn.
"Martin's stock is going to go higher because he freakin' bought the heck out of it when it was much lower, and now there is no supply," the "Mad Money" host said.
Cramer explained his mentality behind why he chose Agco.
If a trader is running a trading desk and a portfolio manager says he missed the move in Deere and wants to buy something like it, they would reach for Agco.
"A 500,000 share order of this $5 billion company would move its stock up $3. If that happens, then I bet one of these naysaying analysts upgrades the darned thing. It would only take one," Cramer explained.
If this happens, Cramer wouldn't be surprised to see the stock shoot to $70.
The reason why the stock would move is not because Agco is the best in the world, or because the agriculture cycle is so powerful. It simply comes down to supply and demand, and now there's no supply.
"This is a market about the Agcos, the unsung, the metal bending companies that just soldiered through," Cramer said.