Jim Cramer: Koppers, Trinity, Darden, Coca-Cola
(Corrects misspelling of Fayard in fifth paragraph.)
Koppers Holdings Inc. (KOP) and Trinity Industries Inc. (TRN) are good investments because of their ties to the railroad industry, CNBC host Jim Cramer said today on his ``Mad Money'' television program.
Koppers, based in Pittsburgh, is a maker of parts used on railroad tracks and will grow as rail companies such as Union Pacific Corp. and CSX Corp. invest more in equipment, said Cramer, a market commentator and former hedge-fund manager.
Trinity, the largest U.S. manufacturer of rail cars, will benefit from increased production of ethanol, said Cramer. Ethanol can't travel through pipelines and Trinity makes a rail car designed to transport the corn-based fuel, he said.
Cramer also recommended Darden Restaurants Inc. (DRI), the owner of Red Lobster and Olive Garden, because it is a potential buyout target of private equity firms. He said private equity firms like to acquire companies that produce ``massive cash flow,'' which Darden's restaurants would provide, Cramer said.
Coca-Cola Co. (KO), the world's largest soft-drink maker, also was recommended by Cramer. Chief Financial Officer Gary Fayard was interviewed on the program and declined to comment on a report in the trade journal Beverage Digest that Coca-Cola was in ``serious talks'' to buy part or all of Glaceau, the maker of VitaminWater and Smartwater, in a deal that may be worth as much as $3 billion.
``Can't comment on speculation,'' Fayard said.
Fayard told Cramer the company had 9 percent volume growth internationally and expects to see more gains in Japan. Coke Zero has been ``doing great'' and will be in 40 markets by the end of the year, he said.
Cramer recommended buying or holding Arch Coal Inc. (ACI), Avnet Inc. (AVT), Superior Offshore International Inc., BASF AG, Google Inc. (GOOG), Adobe Systems Inc. (ADBE), L-3 Communications Holdings Inc. (LLL), Lockheed Martin Corp., Northrop Grumman Corp. and Siemens AG.
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