Resurgent overseas economies will translate into increased sales for US manufacturing companies, Cramer said during Wednesday’s “Mad Money.” Specifically, sellers of mining equipment have caught his attention, leading him to recommend Bucyrus International today.
Bucyrus, along with fellow Milwaukee, Wisc.-based company Joy Global , owns 80% of the industry. And with mine operators expecting over the next five to 10 years to kick up their equipment spending, both to meet the rising demand for commodities and to replace outdated machines, these two should enjoy a significant spike in business.
Both Bucyrus and Joy Global will reap profits as countries like China consume coal for power plants and iron ore for their steel industry, but Cramer right now is only willing to recommend BUCY. That’s because JOYG is trading at a premium to its rival even though it has a lower long-term growth rate.
After a stellar quarter, where earnings came in 13 cents ahead of expectations, Cramer thinks Bucyrus’ business “is in the sweet spot.” But to find out more and get the inside story on this company, he invited CEO Tim Sullivan to appear on the show. Watch the video for the full interview.
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