McDermott (MDR) "Our Best Hope for Cleaner Coal" -Cramer

June 20, 2008 8:37 AM EDT

McDermott International Inc. (NYSE: MDR) received a recommendation from Jim Cramer on last night's Mad Money. Cramer characterized McDermott as one of his favorite "cleaner coal" stocks that is also focused on new technologies which are attempting to address the world's largest problems, a theme he has been promoting for the last several weeks. Putting it simply, Cramer called McDermott "perhaps our best hope for cleaner coal".

Cramer told viewers of his CNBC show that McDermott's main business focuses on upgrading coal power plants, specifically, through the manufacturing of scrubbers and boilers which reduce the amount of sulfur in coal. Jim said McDermott's backlog is broken up as follows: 35% scrubbers, 30% parts and services, 20% boilers and 15% nuclear power products.

The President of Cramerica believes that the entrance of a new president in November could force the government to implement coal standards that would finally "allow power companies to upgrade their facilities and create a windfall for McDermott."

Finally, Cramer mentioned McDermott's offshore drilling business, which recently entered into a joint venture in China and already has a backlog of about $5.4 billion.

McDermott International, Inc., through its subsidiaries, operates as an engineering and construction company worldwide.

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