Honeywell CEO: Algae-based fuel ‘for real’

(Click for video linked to a searchable transcript of this Mad Money segment)

Imagine making fuel from algae rather than petroleum. Sounds futuristic? Honeywell says it's possible right now.

"We can do that today," replied CEO Dave Cote when Jim Cramer asked how many years it might take to perfect the process. "And the cost of making a barrel of algae oil is about the same as making a barrel of petroleum oil."

Also Cote said, the fuel is able to power cars on the road right now as well as planes in the air. According to published reports, the process is called hydrothermal liquefaction and it can be "dropped in" to refineries that process fossil crudes with little to no adjustments.

"This is real. It's going to happen," Cote added.

Pacific Northwest National Laboratory

As exciting as developments may be for the energy sector specifically, Cramer sees them as an illustration of something else entirely.

He says they reflect just one of the many ways that Cote is always actively attempting to increase shareholder value. "That's why I made Dave Cote, one of my 21 bankable chief executives inGet Rich Carefully, the book's list of leaders Cramer feels are at the top of their respective games.

And because of the strong leadership, Cramer thinks there's every reason to believe the company will execute well, broadly, in all business units.

Looking at reported in mid-July, Cramer thinks recent results confirm the strength. At the time, Honeywell raised the lower end of its 2014 profit forecast range and reported a better-than-expected quarterly profit.

Net income attributable to Honeywell rose to $1.10 billion, or $1.38 per share, from $1.02 billion, or $1.28 per share, a year earlier.

Net sales rose 5.8 percent to $10.25 billion.

Analysts on average had expected earnings of $1.36 per share on revenue of $10.19 billion.

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"Honeywell is an incredibly well-run company," Cramer said. And because of Cramer's belief in Cote and all his initiatives, he's a buyer of the stock as a long-term investment. "I know it's at a 52-week high, but I'm still bullish. I still think the stock has more room to run."

Call Cramer: 1-800-743-CNBC

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