Jim Cramer handed out starkly different grades during CNBC's "Mad Money Lightning Round," blessing one stock while effectively writing off another until it figures out how to make money.
Babcock & Wilcox (BW) earned Cramer's endorsement as a "great spec on the construction of power plants." His advice? Be patient. "Let's wait until it goes down a little bit and then pull the trigger," he told viewers.
The timing is interesting given that Babcock & Wilcox just delivered better-than-expected third-quarter results on November 4. The company posted a loss of 6 cents per share, which sounds bad until you realize analysts were bracing for a 9-cent loss. In earnings land, losing less than expected counts as a win.
Meanwhile, MNTN, Inc. (MNTN) got no such love. Cramer called it "awful" without much sugar-coating. "They have to make money, or else it won't turn around," he said, cutting straight to the profitability problem that's plaguing the company.
Morgan Stanley analyst Matthew Cost seems to agree things aren't looking great. On Tuesday, he maintained an Equal-Weight rating on MNTN but slashed his price target from $22.50 to $20.50.
Market Reality Check
MNTN shares dropped 2% to close at $11.70, well below even that reduced price target. With a market cap of $860 million, the company remains a relatively small player in communication services, which doesn't help when you're competing against larger, better-funded rivals.
Babcock & Wilcox didn't escape the trading session unscathed either, falling 3.2% to settle at $8.22 on Wednesday. But the stock's journey has been wild. Over the past year, shares have traded in a 52-week range from $0.22 to $8.58, showing a dramatic recovery from rock bottom. The company's $930 million market cap positions it in the electrical equipment sector, where firms are navigating the complicated and often expensive global energy transition.
