Regular Mad Money viewers might be wondering if Cramer will ever run out of stocks for his new-tech portfolio. For over a month now he’s recommended a whole slew of picks from the group. Well, Tuesday night he added another name to the list, highlighting Donaldson , a leader in “filtration technology.”
Any channel surfer who’s recently caught even a glimpse of the show knows Cramer’s newest thesis. New-tech companies are those on the frontlines of innovation, improving people’s lives and making businesses more efficient. Forget about Apple and its new 3G iPhone or Google and its ever-evolving search algorithms, he says. The ingenuity we really need is being done by the Parker Hannifins, Caterpillars and Eatons of the world.
So what exactly is “filtration technology”? (And we’re dead serious when we say that, by the way.) Filters are needed for just about every industrial and automotive application there is, and Donaldson, as the number two manufacturer in the world, is constantly updating their existing products to make them smaller, more efficient and longer lasting.
Cramer said he likes the company because more than half of sales come from overseas, and that number looks to be growing. The most recent quarter beat earnings estimates by 6 cents, despite pressure in the North American truck filters business. The good news, though – for Donaldson and its investors – is that management reported that orders for those filters have turned up again. So the one major wrinkle in this company seems to have been ironed out.
Sure, filters are about as boring an investing theme as you can get. But as we’ve said many times before – Warren Buffett made billions off boring.
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