The REST of the DIRTY DOZEN!

[CharlesMilt]

Last week Cramer announced he is putting together THE DIRTY DOZEN of heavy duty industrial smokestack stocks. This makes perfect sense given today's macroeconomic climate, as anyone with basic knowledge of financial sector rotation economics will tell you. As the fed funds rate peaks and the yield curve flattens, all the BIG HEDGE FUNDS AND INSTITUTIONAL TRADERS shove their MONEY into INDUSTRIALS. This is JUST BEGINNING to happen, so getting in TODAY will give the highest returns.

So far, Cramer has announced only THREE of the TWELVE industrial stocks: CR, HSC, and CMI. There are nine more to go.

You know how Cramer always says to get in BEFORE WALL STREET? Well, that is only HALF the story. You also have to get in BEFORE CRAMER! My thinking is, if you can figure out all or some of the OTHER NINE of the Dirty Dozen, you can MAKE MORE MONEY!

I did some research to try to find the next member of the Dirty Dozen. I looked at what his first three Dirty picks had in common. All had a market cap under $10 bil, P/E's under $20, avg. daily vol under 1 mil, EPS above $2, projected year-over-year revenue growth of 30% or more, projected year-over-year EPS growth of 40% or more, and shrinking long-term debt. Based on these criteria I've found NINE MORE INDUSTRIAL STOCKS that could be the rest of the DIRTY DOZEN!

The first possible Dirty Dozen stock I am buying is PARKER HANNIFIN - symbol PF.

PF is an industrial goods conglomerate. They service 40 countries worldwide, including Brazil, China, India and Russia and recently reported that all monthly industrial orders are up across all segments.

My bet is that PF soon joins Cramer's DIRTY DOZEN. Get in now before the rest of Cramerica boosts the stock price.Last week Cramer announced he is putting together THE DIRTY DOZEN of heavy duty industrial smokestack stocks. This makes perfect sense given today's macroeconomic climate, as anyone with basic knowledge of financial sector rotation economics will tell you. As the fed funds rate peaks and the yield curve flattens, all the BIG HEDGE FUNDS AND INSTITUTIONAL TRADERS shove their MONEY into INDUSTRIALS. This is JUST BEGINNING to happen, so getting in TODAY will give the highest returns.

So far, Cramer has announced only THREE of the TWELVE industrial stocks: CR, HSC, and CMI. There are nine more to go.

You know how Cramer always says to get in BEFORE WALL STREET? Well, that is only HALF the story. You also have to get in BEFORE CRAMER! My thinking is, if you can figure out all or some of the OTHER NINE of the Dirty Dozen, you can MAKE MORE MONEY!

I did some research to try to find the next member of the Dirty Dozen. I looked at what his first three Dirty picks had in common. All had a market cap under $10 bil, P/E's under $20, avg. daily vol under 1 mil, EPS above $2, projected year-over-year revenue growth of 30% or more, projected year-over-year EPS growth of 40% or more, and shrinking long-term debt. Based on these criteria I've found NINE MORE INDUSTRIAL STOCKS that could be the rest of the DIRTY DOZEN!

The first possible Dirty Dozen stock I am buying is PARKER HANNIFIN - symbol PF.

PF is an industrial goods conglomerate. They service 40 countries worldwide, including Brazil, China, India and Russia and recently reported that all monthly industrial orders are up across all segments.

My bet is that PF soon joins Cramer's DIRTY DOZEN. Get in now before the rest of Cramerica boosts the stock price.

[Charlespr]

Symbol PH works better for Parker-Hannifin

[Charlesst]

Thanks for catching that mistake, aj14.

[Charlestego]

Excellent research liroff.

I have thought about trying to beat Cramer to the punch as well. I actually think that the reason he does these themes is exactly for the purpose of benefiting those who do homework. It sounds like you have created a screen based on your post. Are you using one? I'd certainly be interested in what other specs you might be searching for. I also think that looking for BRIC exposure is a good idea. Anyone who watches the show knows that Cramer is likely to recommend industrials with plenty of exposure to the BRIC countries.

P.S. I'm trying to come up with a screen that would mirror the "Seven Samurai". Let me know if you have any suggestions.

[ChesterPa]

Taurus,

I have tried using numerous stock screens but I always find the results to be unreliable - quite often the returned stocks do not match many of the criteria I plug into the screen. Lately I have been using the stock screener provided by my trading service but even that turns up unreliable results. When that happens (as it frequently does), I find myself doing a lot of research the old-fashioned way - checking out stocks one by one. It is tedious and time-consuming, but at least I get what I want. In those cases I start with a very general search by Industry/Sector and market cap - in this case, Industrials and mid-cap - and look at the stocks individually from there. Other lead generators can be SPDR's (for example, you can check the composition of the Industrial SPDR here: http://www.spdrindex.com/spdr/index.cfm?story=composition&symbol=XLI ); Cummins (CMI), the third of the Dirty Dozen, is a member of the Industrial SPDR (as is PH). Too bad there isn't a stock screen for BRIC.

Another thing I like about PH's odds for joining the Dirty Dozen - we already know Cramer is Bullish on the stock. He gave it a "buy" recommendation on his December 2nd show. Similarly, Cramer gave CMI a buy recommendation on December 13th, one day before he started the Dirty Dozen theme and two days before he added CMI to the Dirty Dozen.

I'll experiment with the Seven Samurai screen and see if I have any success.

Good trading,

Liroff

P.S. I recently started a Beat Cramer blog which I update throughout the day. I'm going to post my predictions for the rest of the Dirty Dozen on there daily. You can view it at http://beatmadmoney.blogspot.com/ .