After this segment, you
can see Jim's
Sudden:Death picks
here...
Every week, I save the
smallest, most risky, most
speculative stocks for
Friday...
Now, we save the most
speculative stocks until
the end of the week to
protect you from
yourself... You see, it
steams me whenever I see
anyone bid up (i.e., make
the price go up unusually)
these small-cap stocks
after-hours...
But, now that we've
reached Friday, I've got a
decidedly unsexy-looking,
"new tech" speculative
play for you that you will
do the homework on this
weekend... It's too
late... Even if you wanted
to, you can't buy it
after-market...
It's up huge today, so I
need you to wait for a
pullback, okay... if you
decide to buy it.
Otherwise, you're even
crazier than I am...
. . . .
.
What does this company
do?...
It makes screw-in
cartridge valves and
manifolds... This is, in
reality, a smokin'
business... Remember, the
companies that are winning
now are companies that
make cartridge valves...
that control the speed
motion of fluids within a
hydraulic system, and the
manifolds where you put
the cartridges.
As anyone who watches this
show knows, fluids control
as a business has been
about the hottest
business, other than
natural gas, this year...
so you should go look at
Flowserve Corp. (FLS)...
It was up 5 points
today... Or
Robbins & Myers Inc. (RBN),
another great fluid
management play, up $1.25
today... And look at that
Colfax (CFX)...
Remember that one?
That's another fluid
management stock that I
recommended. It's up 16%
since May 12th... We have
fluid control
cred(entials) on this
show, and we're using it
to back SNHY...
. . . .
.
You cannot operate big
machinery without
hydraulic valves. And this
country makes some of the
best and most efficient
ones... which makes SNHY a
"new tech" necessity.
Their valves do not make
it so you sell more or
better customer
retention... These things
are in oil platforms, ag
equipment, mining
equipment, construction
vehicles, cranes... This
is all the stuff that's
being bid up all around
the world.
We like SNHY, because it
seems to have designed a
better valve... Yeah, pure
and simple... a "making a
better mousetrap" play...
. . . .
.
Cartridge valves - the
kind SNHY makes - are
lighter, more flexible,
more efficient than older
competing cast-iron valves
their replacing... These
guy's have it...
That's why cartridge
valves are growing at
twice the pace of the
overall valve market, and
it's why SNHY can charge a
15-30% premium for its
valves over the
competition.
SNHY is also working to
make integrated valve
systems that are
electronically-controlled.
This is what their
customers in the machinery
business want, and SNHY
has partnered with two
companies... White Oak
Controls and High Country
Technologies to deliver
it...
Do you know that
electronic controls from
White Oak are integrated
into some of SNHY's
valves, making them easier
to control... Energy
saving... and SNHY has
made an equity investment
in its other partner, High
Country, which is why I
mentioned it. That makes
master controllers for
hydraulic valves. A hidden
value there.
. . . .
.
SNHY is split 50/50
between U.S. and
International... 60% of
the companies sales are
exported, which you know
we like, because it's a
weak dollar play... It
also means you have to pay
attention to the exchange
rate, if you own this
stock... because our
marvelously-difficult
government has started
clamoring about
strengthening the dollar,
and the dollar did have
its best showing in a long
time this week... so that
could hurt the stock if it
keeps going up.
Remember, this is
Speculative Friday... SNHY
could also be a great
potential takeout (i.e.,
acquisition target) for
any company looking to
beef up its fluid
management exposures...
with better valves,
because SNHY has a decent
market share of 17% of a
billion-dollar market for
higher-end valves.
The company has what we
like in a speculative
stock... It's
under-covered... three
analysts cover it. A clean
balance sheet, $23 million
in cash... just a little
bit of debt...
SNHY is trading at 17.5x
forward earnings, with
23.5% long-term growth, so
it's cheap...
I think this about $38
stock has the potential to
go to $48, just on the
strength of its growth...
$10 bucks, okay... not to
mention its "new tech"
valve innovations.
. . . .
.
The Bottom Line!:
A valve is not a valve is
not a valve... And,
if you want the best
valves... the most
technologically-advanced
ones... that the global
economy can't get enough
of, then you want Sun
Hydraulics Corp. (SNHY).
Not sexy... just money.
. . . .
.
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Final Segment 2
Final Segment
2
Title:
'Housekeeping'
NOTE:
Jim reviewed these two
stocks that he was
stumped on or said
that he misspoke on,
and had to go back and
do homework on, to
give this opinion
(below).
. . . .
.
Featured Stock(s):
Linn Energy, LLC (LINE)
Brigham Exploration
Co. (BEXP)
After this segment, you
can see Jim's Lightning
Round picks
here...
NOTE:
Jim reviewed these two
stocks that he was stumped
on or said that he
misspoke on, and had to go
back and do homework on,
to give this opinion
(below).
These are his comments...
JJC:
Yesterday, Cramer got
stumped twice by two
different callers in the
same segment... And, when
you stump Cramer, he does
the homework, comes back,
and tells you what he
thinks of your stocks...
JJC:
Let's talk about the two
stocks that I screwed up
on... And the first one is
Linn Energy, LLC (LINE)...
It's a master-limited
partnership that focuses
on producing oil and
natural gas in mature
areas. It distributes the
profits to shareholders in
the form of a big, fat
dividend... It's the
opposite of a wildcatter
and we like wildcatters...
The story here is that the
company sold a lot of
stock to buy a lot of
different assets. It
couldn't operate well as a
whole, so it changed its
strategy and started
selling assets, focusing
on its core properties in
the Anadarko basin...
This is not a company that
wants to be in the
Marcellus Shale, because
it doesn't want to spend
much to drill for oil. It
just wants to pump and pay
you a big dividend.
Now LINE is almost done
with its turnaround... If
you want a high-yielder...
10.6%... a possibility of
a buyback... It's for you.
JJC:
The next one... this
company was interesting...
Brigham Exploration Co.
(BEXP)...
This is a company that
uses seismic, 3-D
geotechnical imaging to
drill for onshore oil and
gas... These guys have
exceptional reputations as
scientists, but average
reputations as
wildcatters.
On many occasions, their
well results have been
worse than those of their
peers in similar areas...
It doesn't mean they can't
learn. In fact, they've
been improving... but it's
still a reason to hold
back. This company is
arguably one of the most
levered to the Bakken
Shale, and it also has
some nice Gulf Coast
assets...
The idea of this one
appeals to me, as BEXP's
seismic technology gives
them a great knowledge
base for evaluating other
potential plays.
Come on though... It's had
a real run. It's up 100%
year-to-date. No... not
for me. You need a
pullback before I'd buy
BEXP.
Do your homework and I do
my homework...
. . . .
.
■
Stock Snapshots - Includes
all stocks mentioned above
■
Jim
Cramer's
rating on
this stock
STOCK
SYMBOL
Closing
price
that
day
Opening
price
next
day
Full Company
Name/Comments
(see comments above for
each)
Go to the SUDDEN:DEATH
SEGMENT from
tonight's showhere >>
See current quotes on Yahoo!
Finance from
tonight's show stocks
here >>
Symbol keys:
A Charitable Trust stock.
- An asterisk next to a
stock symbol indicates that
Jim mentioned it is a stock
that he manages within
his
charitable trust portfolio.
You can see the complete
portfolio
of stocks
here >>
Thumbs up - indicates
he would buy the stock or,
at the very least, not sell
the stock. We do our
best to interpret Jim's
opinion on stocks, as we
think it is indicated by his
comments during the show.
Please read his comments to
decide for yourself.
Thumbs down -
indicates he has said not to
buy or to sell the stock,
based on his comments
We do our best to interpret
Jim's opinion on stocks, as
we think it is indicated by
his comments during the
show. Please read his
comments to decide for
yourself.
Back up the truck -
indicated by Jim, when he
says the stock is so good,
that he would do a
'mon-back' on the stock...
In other words, this is the
sound someone would say to a
truck driver, "Come on
back... " as he is "backing
up the truck" to load up on
his cargo. Translation
for buying stocks:
This recommendation by Jim
indicates that, after you do
your own
homework on the stock,
you should feel comfortable
loading up on it, as it is
in a good position to be
bought at this point.
Stumped. - Of the
2,000+ stocks that Jim
Cramer has in his head, for
which he has an informed
opinion, he sometimes comes
across a caller with a stock
he does not know well enough
to opine on... He then
indicates he is stumped and
will have to come back to
it, after he does some
homework of his own on
the stock. This
usually occurs during the
Lightning Round, when Jim
does not know in advance who
is calling, or what their
stock question is about.
Definitions of key phrases
used by Jim, known as
"Cramerisms":
Definition: 'Pull the
trigger' is Jim's phrase for making
the decision at that point to trade -
either to 'buy' or
to 'sell' (although he
usually uses the phrase for
buying), as if to say you
should feel comfortable
enough to make the final
decision without looking
back...
Definition: 'Ring
the Register' is Jim's phrase for
selling a stock, and making
it a final sale, that you
should not look back on.
Put it behind you.
Definition:'Let It Come In' indicates how you
may wait for it to pull back, or have the
stock price come down briefly, as your
chance (after letting it come in) to buy
the rest of your position (i.e., total
number of shares you own in that stock).
Definition:'backing it up'
or 'doing a 'mon-back' is Jim's
phrase for the metaphor of backing up a
truck to load up on a stock by buying
it. 'Mon-back is short for the
imaginary worker saying, 'Come on
back...' as the truck is backing up to
receive its load... Notice that we use
the little truck icon to indicate where
Jim has mentioned this.
Translation for buying
stocks: This
recommendation by Jim
indicates that, after you do
your own
homework on the stock,
you should feel comfortable
loading up on it, as it is
in a good position to be
bought at this point.
See more
"Cramerisms" & other
financial phrases
here >>
Helpful Websites:
See the stocks currently
known to be in Jim Cramer's
Charitable Trust at:
Stock Homework 101:
This is an excellent
upcoming site that provides
resources and links to help
you do that homework that
Jim Cramer recommends after
hearing his suggestions...
FastMoneyRecap:
This site will be a quick
summary of recommendations
made by the great Fast Money
TV show crew, that will
offer you a unique service,
to compare their picks to
Jim Cramer's past comments
about those stocks.
