Cramer welcomed Michael Sutherlin, president and CEO of Joy Global (JOYG), to discuss his company’s positive earnings call that took place Thursday. Sutherlin said Joy Global is seeing unprecedented demand for its mining equipment that serves the coal, copper, iron ore and oil sands markets. He pointed out that coal demand is very strong for power generation in emerging markets and in Europe. Sutherlin explained that emerging market like Russia, Indonesia, Turkey, Dubai and Brazil have extreme appetites for commodities as they build out their infrastructures. “The reality is that we do not have enough energy supply in any form, coal, natural gas, or oil to satisfy the growing demand for energy around the world,” he said. Sutherlin mentioned that some of the run in commodities could be due to hedge funds or speculators, but most of the price increase is due to supply and demand. “It’s all a matter of supply not able to catch up with the continued growth and demand,” he said. He gave an example with Iron ore, which doesn’t trade on the commodities markets. The price of iron ore has has risen faster than most commodities that trade in the open market. Cramer said JOYG is undervalued and investors should “pull the trigger” now.
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