Cramer was bullish on Paccar in his July 13 "Lightning Round."

Another venerable company making a hefty payout reduction last week was Paccar (PCAR). One of the world's largest big-rig truck manufacturers, Paccar on Tuesday sliced its quarterly in half, to nine cents a share, for an annual savings of roughly $130 million. The 104-year-old Bellevue, Wash., company, whose premium global truck brands include Peterbilt, Kenworth and DAF, was quick to point out that it has earned a net profit for 70 consecutive years and has paid a dividend every year since 1941. CEO Mark Pigott called the payout cut "a prudent business measure in response to the global challenges affecting all industries." He added that the reduction will "enhance Paccar's strong balance sheet and liquidity" and allow it to invest in such projects as new truck models, factory productivity and aftermarket distribution centers. Pigott noted that Paccar has increased its quarterly by 200% since 1998. It had been in the habit, too, of paying a bonus dividend every year since the mid-1990s, although last year's was only 10% of 2007's $1 a share. JPMorgan Securities thinks Paccar will continue to keep $2 billion to $2.5 billion of manufacturing cash on its balance sheet, as it has since 2005. The firm believes "the trough of the U.S. economic cycle is upon us...though a recovery in truck orders will likely lag a recovery in industrial production and freight demand by about two quarters."

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""I would go back to the accidental yielders like Emerson (EMR) and Honeywell (HON), and I would look to build Paccar (PCAR) on some truck numbers that should be favorable next week." "The Post-Mark-Up Could Sting Industrials," 6-30-09

From a recent Mad Money show:"A very industrial company and that world is going down every day. I want you to be careful."

One of the world's largest big-rig truck manufacturers, Paccar , declared a special 10-cent-a-share dividend Tuesday, along with its regular 18-cent quarterly payout. The company has paid 15 bonus dividends since the mid-1990s. However, the latest is only 10% of last year's $1. In addition, Paccar (PCAR), which has handed out dividends without interruption since 1943, had hiked regular payouts an average of 20% annually in the 10 years through 2007. CEO Mark C. Pigott said in a statement that the extra dividend reflects Paccar's good performance, "yet also recognizes the very difficult global truck markets experienced in the fourth quarter of 2008 and projected into 2009." The 103-year-old Bellevue, Wash., company's premium global truck brands include Peterbilt, Kenworth and DAF. The distribution, record and ex dates for the special payout are Jan. 5, Dec. 19 and Dec. 17. The regular dividend goes out in March.

Mad About Options: Test-Driving PACCAR: The Mad About Options crew reviews Jim Cramer's recent bullish comments about PACCAR and offers options strategies for traders and investors. Also hear options ideas for Aetna and Nordic American Tanker.
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Paccar , the maker of highly regarded Peterbilt and Kenworth trucks, is down almost 50% this year to 28 and now trades for eight times estimated '08 earnings. Paccar has a great balance sheet with about $6 a share in net cash. One of the risks with Paccar and makers of construction and farm equipment is their finance subsidiaries. Paccar had $9 billion of finance receivables at the end of the second quarter and analysts worry about a recession's impact and declining truck values. Equipment makers also could get squeezed as their finance subsidiaries raise loan rates to reflect higher funding costs.

Meanwhile, we have so little actual industry in the Nazz: Paccar (PCAR), Joy Global (JOYG), Steel Dynamics (STLD). It is almost as if they have to do all the real lifting because tech can't work.

What can I say. I like trucks and this too was undervalued.

liked it, but way overvalued now

Great company, but the stock seems to have gotten way ahead of itself in this uncertain economic environment

weak demand