JJC:    I want you to compare a company that makes better and better "shoot 'em up" games... to a company that I like... a company that you should buy...

And the company is... so boring, that I'm afraid to give you the title... 

It's called Baldor Electric Co. (BEZ).

BEZ is a "new tech" name that I'm endorsing today, and it makes... you've got it... energy-efficient electric motors...  You're looking at the stock of the future...

This is a company that allows other businesses to save money on power, and helps all of mankind, by reducing overall energy consumption...  unlike "old tech" companies whose new gadgets, with all their extra bells and whistles, actually cause us to consume more energy...

We know which one is better for the world, but I'm telling you again that I believe the "new tech" play is also better for your portfolio... and, boy, have they held up in the onslaught that we've been getting.  These hold up...  Why?  Because increasing energy efficiency is priority #1 for every business in every country on this planet.

That's a lot of demand... and it's why I like Baldor Electric Co. (BEZ)!

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Allow me to introduce you to BEZ, which makes industrial electric motors, the kind you need to run just about anything... That's 63% of their revenues. It's the motor company... It's not GM... No, this is real motors... power transmission equipment... something that's in short supply, especially in the United States, where our grid is in desperate need of renewal... That's 27% of their business. And generators, and drives that make up the last 10% (of their business).

BEZ is the consummate "new tech" company, and you know I'm going to drill these into your head, because they're making us money.

In fact, I have to tell you, I wish it were called "Baltech," because then you'd like it more... Baldor is not exactly a "sexy, can I"..."It's a Kodak, moment, go-and-get-your-camera" (referring to a current top pop song lyric by Ray J)...  stock, if you know what I mean...

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20% of its total motor sales come from one line of engine, the "Super-E" line that is incredibly energy efficient. And, since 98% of the total lifetime cost of electric motors comes from electricity, that matters enormously. How about a 30 horsepower Super-E motor, running continuously?... $1200 per year on energy costs that it saves. You see, I'm trying to tell you that, with $1200 a year on energy savings, you can then go buy one of those DELL computers with that...

The pricing on these motors is about 20% higher than on regular ones, and you can see why. It's like a (Toyota Hybrid-engine) Prius, okay... Considering the electricity cost savings, this motor pays for itself in a few years.

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Now, this "new tech" line of motors grows at 25%, compared to 10%, for the rest of BEZ's motor business, so it's going to be a bigger and bigger part of the company.

This is exactly what we look for in a "new tech" company... a product that addresses one of the 10 unmet needs of humanity... this need being the need to reduce energy consumption...

Those who thing (the price of) oil is up (due to) speculators... this one's not for you. I think oil's up because of demand. BEZ cuts the demand.

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BEZ is also poised to benefit from the 2007 energy bill, which mandates that motors will have to be more efficient by the end of 2010. These efficiency standards apply to more motors than before, and BEZ believes that half of the motors will be affected... something that will result in at least 10% sales growth, just from the 2007 energy bill alone. That would be not until 2011 though.

Here's a word we like to use that you don't hear much with "old tech"... With "new tech" you've got it. It's called visibility. If all goes as planned, we could see this company's growth all the way into 2011, because of its super-efficient motors.

Now, we know there's a huge bull market for energy and energy-saving devices. BEZ taps into both of these with its energy-efficient motors, and its electrical transmission equipment.

BEZ's gone through a really transformational deal. It bought one of the companies... they bought Reliance... they also bought Dodge... It doubled their revenues. The deal gives BEZ more international exposure. The more rest of the world, the better, as far as Cramer's concerned. It broadened the variety of the products it sells and gave the company a new, more efficient, so-called "power lean" approach to manufacturing, which is being rolled out in BEZ's plants, and BEZ's "flex flow" materials handling approach is being rolled out in Reliance and Dodge plants... all of which should result in better operating margins...

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I go into this, why... because I want you to understand... They have a better mousetrap that uses less energy, that they are trying to bring the cost down to produce for you, because it is the most expensive engine.

Now, the company is one of the few companies that I think... that celebrates a weak dollar, but they actually do it out loud... It's terrific CEO, John McFarland, said on a recent conference call, "It just burns me up everytime I hear people talk about a weak dollar. It also helps our domestic customers be more competitive internationally. It helps us be more competitive internationally, and it causes foreign products to be less competitive." In other words, what the CEO is saying is, he's killing the other foreign motor guys. He can build cheaper, but better, motors. We've seen this with Caterpillar (CAT). We've seen this over and over again with our trust belt stocks... We're the best manufacturer in the world, and now we're the cheapest, because of the weak dollar.

Despite being a "new tech" savior of mankind, BEZ is not well-liked, like a lot of the stocks I recommend. It's not well-liked... It's got a real high short position. 16% of the float is being shorted. People are betting against BEZ. I think this is because of BEZ's high debt. The company has a debt-to-capitalization ratio of 62%. That's a lot. I usually like them lower on the show. I think, though, it appears completely capable of paying off that debt. In fact, according to management, BEZ plans to bring its debt-to-capital ratio down to 30%, its historic level in two years. That's one year ahead of schedule.

Now look, I don't like debt, okay... A debt taken down to fund smart acquisitions, though... I like that. BEZ looks like it should have no trouble paying.

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Now, in fact, I view the hatred of the stock - the high number of people betting against it - as a positive... because it has the potential to create a short squeeze on any good news... which would send the stock soaring.

Still... please don't pay up. One of the things we've seen on this show is that managements watch the show. The stock moves up, because you're overly enthusiastic, and they immediately issue stock. They immediately issue stock to try to pick you off. I fear that, if you buy this stock up big, the company will be motivated to bring on what is known as a secondary (stock offering). Let it go up over time. And then let them do the stock issuance to pay down debt at a much higher level.

BEZ is cheap. It trades at 12.9x forward earnings. Hey, it's got a growth rate of 13.7%. You know the rule of thumb... When the price-to-earnings multiple is lower than the growth rate, and the fundamentals are solid, that's a buy in my book.

Here's the bottom line for BEZ...

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