Jim Cramer: SGL Carbon, Banco Itau, Foster Wheeler, CSX

SGL Carbon AG, Banco Itau Holding Financeira SA and Foster Wheeler Ltd. may rise after they were recommended by CNBC host Jim Cramer said on his ``Mad Money'' show on May 5.

SGL Carbon, the world's largest maker of carbon and graphite products, will benefit from demand from defense and aerospace companies grows, said Cramer, a market commentator and former hedge-fund manager.

The company's products, made of light and tough materials, are used to make body armor, brakes for race cars and nozzles on rockets, he said.

While the German company's forecast for the year is conservative, SGL should ``beat expectations again and again,'' Cramer said.

SGL's American depositary receipts rose 29 cents to $7.98 in New York Stock Exchange trading on May 5. One ADR represents one- third of an ordinary share.

Hexcel Corp. (HXL) and Brush Engineered Materials Inc. are also expected to benefit from increased aerospace orders as companies seek lighter materials to use in products.

Banco Itau Holding, the Sao Paulo-based bank, also was recommended by Cramer. The company this week agreed to buy Bank of America Corp.'s BankBoston unit in Brazil for about $2.2 billion in stock to become the country's biggest non- government lender.

Banco Itau's American depositary receipts rose 98 cents to $34.85 in New York Stock Exchange trading. One ADR represents one preference share.

Foster Wheeler Ltd., a U.S. oil and gas engineering company that builds refineries, also was recommended by Cramer.

The company, which suffered with debt issues when oil traded at $20 a barrel, is benefiting from growing orders from governments and state-owned companies that are investing in infrastructure. Oil prices are also trading at more than $70 a barrel.

Foster Wheeler shares rose 18 cents to $46.58 in Nasdaq Stock Market trading. The stock has more than tripled in the past 12 months and is up 27 percent this year.

Stocks recommended during the ``Lightning Round'' of responses to viewers' questions included Nighthawk Radiology Holdings Inc., CSX Corp. (CSX), Lockheed Martin Corp. (LMT), Northrop Grumman Corp. (NOC), General Dynamics Corp. (GD), Suncor Energy Inc. (SU), Marvell Technology Group Ltd. (MRVL), Occidental Petroleum Corp. (OXY), GlobalSantaFe Corp., Whole Foods Market Inc. (WFM), Coldwater Creek Inc. (CWTR) and Procter & Gamble Co. (PG)

Cramer told viewers to avoid Martha Stewart Living Omnimedia Inc., PW Eagle Inc., CalAmp Corp. (CAMP) and Research in Motion Ltd. (RIM)

To contact the reporter on this story: Samantha Zee in San Francisco at szee@bloomberg.net

To contact the editor responsible for this story: Dan Reichl at dreichl@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.