Back in April, when Cramer went to Indiana University, he recommended a local machinery company called Cummins . Since then, the stock has been on an absolute tear. Cramer takes the heat when he’s been wrong, but he’s also going to take credit for nailing Cummins. That isn’t to say the stock is done running. Cramer put Cummins CEO Tim Solso on the line to see what’s next for this "great American company."
Until recently, Wall Street has viewed Cummins as a truck company and nothing more. Historically, Cummins has been dominant in heavy duty trucks, a cyclical business, but it has recently diversified itself and “the investment community hasn’t understood that until the first quarter of this year,” Solso said.
And as emissions standards tighten and cleaner truck engines are demanded in markets worldwide, Cummins actually stands to benefit. Environmental regulations play into the company’s strengths, Solso said, as it considers itself the technical leader in emissions. The more stringent the standards, the more it all plays into the hands of Cummins.
With a stronger balance sheet on the way, Cummins is set to have a lot of cash on hand. Solso said he’s looking toward different organic growth opportunities in the company's distribution, in markets like China and India and in new facilities where Cummins and its shareholders “will get a return on that cash.”
Cramer is still sold on this story. Cummins is your stock, he said. It isn’t done going up.
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