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Thursday, November 02, 2006

Cramer Calls Watts Water a Serious Buy

Tonight on MAD MONEY, Cramer discussed a stock that was brought up in yesterday's LIGHTNING ROUND on Watts Water (WTS). Cramer yesterday said he was going to explore it further.

Cramer said it has a theme. He said the theme can work for years and that is what secular is about. He said the company showed great earnings, but the shortage of water and need for clean water theme isn't going away. He said Watts Water is a pure-play on this, and it is better than his previous Pentair (PNR) and Aqua America (WTR). He also said the water companies in Europe are played out.

Cramer said he just noticed that yesterday with the stock up. Cramer says Watts Water is a serious buy. He wishes he spotted it sooner, but it is still lower than its 52-week high. HE said it trades at 14-times next year earnings.

Cramer said it is best of breed and cheapest among its peers. They bought their way into China recently too. He thinks it can beat estimates and has pricing power. He doesn't mind that 15% of the business comes from new housing construction. The CEO said it is only 1 or 12 areas of the company.

Cramer said there is also an army of bears in the stock. But Cramer says it is a Triple Buy.

Jon C. Ogg
November 2, 2006
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