Jim Cramer: Ingersoll-Rand, Caterpillar, Nutri/System, Alcan
Stock Chart for Ingersoll-Rand PLC (IR)
Ingersoll-Rand Company Ltd. and Caterpillar Inc. (CAT), are worth buying because of more government spending on the country's highway system, Jim Cramer said on his ``Mad Money'' television program on CNBC June 21.
Vulcan Materials Co. and Martin Marietta Materials Inc. (MLM), the two biggest U.S. producers of road-construction materials, were also recommended by Cramer.
Highway and street funding has risen 13 percent during the past six months while new highway contracts increased 23 percent through May, said Cramer, a market commentator and former hedge-fund manager.
Prices for crushed rock used to make roads are unlikely to fall because the costs Chinese and Japanese producers would incur by shipping products to the U.S. prevent competition from overseas, Cramer said.
Ingersoll-Rand, the world's largest maker of earthmoving equipment, rose 4 cents to $36.10 in trading after the official close of U.S. markets. Caterpillar, the world's largest maker of earthmoving equipment, added 15 cents to $68.50.
Vulcan Materials Co. (VMC), which may get business from the state of California, according to Cramer, rose 80 cents, or 1.2 percent, to $67.80 in extended trading. Alon USA Energy Inc. (ALJ), an oil refiner and fuel marketer that makes asphalt as a by-product, advanced 81 cents, or 2.5 percent, to $32.65.
Ashland Inc. (ASH), the biggest North American road builder, gained $1.48, or 2.3 percent, to $65.70. The company is worth buying because its Ashland Paving and Construction unit may attract as much as $2.5 billion in an acquisition, said Cramer, who added that the stock may advance on its earnings results, scheduled for release next week.
Nutri/System Inc. is also worth buying, Cramer said.
Investors should avoid Granite Construction Inc. (GVA), a building contractor, because much of its revenue is dependent on housing demand, which is falling, Cramer said.
CSX Corp. (CSX), Schlumberger Ltd. (SLB), United Technologies Corp. (UTX), Textron Inc. (TXT) and Motorola Inc. will fall until early this week, then rise because of positive earnings results and the possibility that the Federal Reserve will drop interest rates in October, Cramer said.
Cramer recommended Alcan Inc., SGL Carbon AG, Sealy Corp., General Motors Corp., Walt Disney Co., News Corp. (NWSA) and Energy Partners Ltd. in response to questions during the show's regular ``Lightning Round'' segment June 21, and Advance Auto Parts, Inc. and Vaalco Energy, Inc. during a second, shorter round.
He also told viewers to avoid Texas Instruments Inc. (TXN), Select Comfort Corp. (SCSS), Ford Motor Co. (F) and Hansen Natural Corp. during the regular round, and Sealed Air Corp. (SEE) during the second round.
Cramer suggested that investors should buy Valero Energy Corp. (VLO) if it falls to $56 a share and Ametek Inc. (AME) if it drops by $3 a share. Burlington Northern Santa Fe Corp., Union Pacific Corp. (UNP) and CSX are worth buying after sellers finish their current sell-off and before the stocks rebound starting tomorrow, Cramer said.
Cramer said he owned Ingersoll-Rand, Alcan and News Corp. for his charitable trust.
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