FEATURED SLIDESHOW
Who Is The Worst CEO?Mad Money needed new inductees for its
Wall of Shame, so we asked viewers for
nominations.
RECENT POSTS
- Money-Making Mood Stabilizers
- No Product Revenues, Plenty of Risk: Buy Exelixis?
- Lightning Round: Caterpillar, Starbucks, Intel and More
- Lightning Round OT: SanDisk, Marvel Entertainment and More
- The Discounter’s Dilemma
- Cramer: Earnings, IPOs Dominate Next Week’s Game Plan
- Cramer: GE Upgrade 'Very Powerful'
- 2 Takeover Targets in the Pharma Market
- Lightning Round: Bank of America, Crocs, Inergy and More
- Lightning Round OT: Royal Bank of Scotland, Seabridge Gold and More
MAD MONEY FEATURES
PODCASTSWatch the Lightning Round whenever and wherever you want.
OFFICIAL MAD MONEY WIDGETGrab this all-in-one application and get recaps of the show sent right to your desktop or blog.
CRAMERS SOUNDBOARDAdmit it: You've always wanted to hit the "They
know nothing!" button. Here’s your chance.
CHECK OUT OUR PHOTOSCheck out Cramer on set, back to school, behind the scenes and more.
SHOP FOR MAD MERCHANDISEBuy Cramer books, bobbleheads and other Mad Money merchandise.
RING TONESPick up the phone! It's Cramer! New Mad Money sounds for your cell phone.
TEXT MESSAGE ALERTMad Money's mobile. Get show highlights sent to your phone.
Text Size 
The debate over how Caterpillar will fare as we head into 2009 and a coming recession is split, not surprisingly, between a confident management and hypernegative analysts. To come to his own conclusion, Cramer ignored them both.
Wall Street is expecting CAT’s [CAT
Loading...
()
] earnings to be cut in half as ISM numbers are getting worse, the dollar’s getting stronger, energy looks bad and housing is still in trouble. Management, however, expects revenues to be flat year-over-year, end markets to remain strong and 2009 to be a good year overall. But Cramer is concerned only with the dividend, which is worth $1.72 a year, or 4.1%. Because no matter who’s right in this debate, investors will be paid to wait.
If forced to choose sides, though, Cramer would say the analysts are behind the curve here. The expected worse for CAT is already priced into the stock. The share price recently has dropped as low as $33, a price that reflects depressionary levels, not the recession-like dip we’re expected to see. If CAT ever dropped that low again, the dividend yield would jump to 5.2%, making it an attractive buy, Cramer said.
Cramer’s also expecting an infrastructure boom under a president Obama, who the polls have said should win Tuesday night, so CAT would benefit there as well.
As long as this stock’s yielding 4%, Cramer said it’s a buy. Worst-case scenario, CAT goes lower and you get to buy more for its higher yield at a cheaper price. If CAT goes up, Cramer thinks it could trade as high as $60.48 (it’s at $42.25 now), for a nice 43% gain.
Questions for Cramer?
Questions, comments, suggestions for the Mad Money website?
Data is a real-time snapshot *Data is delayed at least 15 minutes