Cramer Digs Siemens As Europe's GE Equivalent (SI, GE)

On tonight’s MAD MONEY on CNBC, Jim Cramer continued his stock pick series for "Investing in Europe."  Tonight his pick is from Germany: Siemens AG (NYSE:SI/ADR).  He likes the conglomerate that participates in 9 sectors: medical, manufacturing, parts, emerging tech, communications, and everything else under the sun.  He thinks this was one of his $80+ to $120, because it went from under $80.00 to over $140.00.  He considers this as Europe’s version of General Electric (NYSE:GE).  This also lets them win projects that other companies cannot handle.

Here is the problem with this call, Siemens is a great company but it’s valuations look higher than most of the other large conglomerates. Its market cap is $131 Billion on a currency adjusted basis.  Part of the 100% rise in ADR’s is because of the weak dollar, but even in Euros this stock is up more than 60% over the last year.

Cramer has his "Stock Picks from the EU" series this week.  He’s picking diversified payers with large market caps, and these have been big performers.   His ADR pick on Tuesday was ABB Ltd. (NYSE:ABB) and Philips Electronics (NYSE:PHG)  was his pick from Monday.

Jon C. Ogg
July 18, 2007

Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.