Q: So this is a historic buying opportunity?

A: Right. We are in the process of creating a bottom, most likely in the next 12 to 18 months. As for buying opportunities, they are not confined to small-caps. We've got the S&P at a multiple of about 11. There are some larger-cap industrials like an Eaton [ETN] and Parker Hannifin [PH] selling at six or seven multiples on current earnings. You could haircut earnings next year way beyond your imagination, say 30% to 40%, and you still have a single-digit multiple on the stocks.

11/18/2008

Cramer: How to Trade Eaton:
This is a great company, but proceed with caution, says Jim Cramer.


Click here to watch the video.

Parker-Hannifin (PH), $8 billion.

But it is the finance model, the GE finance model, that this really helps. It is worth pointing it out because, again, anything that takes the Great Depression off the table -- including the ability for finance companies to, well, finance -- is very important. That means Honeywell (HON), Eaton (ETN), Parker-Hannifin (PH), United Tech (UTX) all should be doing better here, as well as Caterpillar (CAT) and Deere (DE), which have an ability to issue.

19%

Thier tech beats the forgein tech and the foreign markets will buy from them

Should Parker-Hannifin (PH) have been down 4 at one point because of Eaton?

You are going to see buybacks of huge proportions. Companies like Deere (DE) and Parker-Hannifin (PH) and Caterpillar (CAT) are swimming in cash. United Technologies (UTX), Emerson (EMR), huge.

Cramer: The Few Sectors Worth Buying: Goldman's Boeing downgrade has added aerospace and auto stocks to the sell list, says Jim Cramer.


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