In this uncertain market, its best to stick with investing in high quality companies you’re comfortable with no matter how badly things go in Washington or Europe, Cramer said Monday.
Case it point — Cramer fave Eaton . The big diversified manufacturer, who makes everything from fluid power systems to fuel efficient transmissions and hybrid truck engines, reported a terrific quarter Monday morning. It delivered 97 cents of earnings per share, a 2 cent beat, on stronger than anticipated revenues that rose 21.1% year over year.
Chairman and CEO Sandy Cutler told the “Mad Money” host that the company is really involved in the capital goods markets, which have a longer-term view and tend to ride a little more smoothly the bumps that affect the consumer market.
“Clearly, gas prices have affected every consumer here in the US,” he said. “But what that really means is that all companies and individuals are seeing the need to be able to trim their use of energy. That’s indeed what we do and people are making multi-year investments right through this soft patch to be able to allow themselves to compete more effectively with a higher cost of energy in mind.”
And while all eyes are on Washington to see if a deal is struck over the debt ceiling, Cutler told Cramer the drama does not play much of a role on Eaton’s finances.Page 1 of 2 | Next Page