The Kelley School of Business’ Reese Fund is made up of 20 students that belong to the Kelley Investment Management Academy. Students have to pitch their stocks to a board of successful Wall Street alums to get their positions into the $500,000 fund. In that tradition, Cramer had a few of those students pitch their stocks to him to see if they got the Mad Money seal of approval.
Dan’s stock was Spartan Motors, for three strong reasons in particular – the company’s sales of the chassis it makes for both emergency and military vehicles, and its exposure to RVs.
Everyday 55,000 people reach retirement age, Dan told Cramer, and those people don’t want to be in the bingo lounge - they want to be on the road, enjoying themselves. That translates to big profits for SPAR, he said.
And in this post-9/11 world, safety is an immense concern. Municipalities don’t want to be stuck with the liability inherent in 54% of fire trucks in use being 15-20 years old. Again, with Spartan being a major manufacturer of these vehicles, this equals big numbers for the company.