Cramer Rides the Reading Railroad

The first pick was Koppers (KOP-NYSE), which he first picked in March 2006 and the shares are up 46% since then.  He calls it a stealth railroad play because it is mostly a chemical company, but 30+% of its revenues come from it making railroad ties and splitters that are needed for the rail infrastructure. 

His second pick is Trinity Industries (TRN-NYSE) as the largest railroad car maker in the US.  This is up almost 40% since he recommended it last year. This stock is also up on year highs, and is essentially on all-time highs.

One thing to keep in mind here, is that Cramer is sticking with his "stocks on highs" preference.  True momentum players will tell you this is the thing you want to do as they believe stocks that are hitting highs are doing it for a reason and you will see them go higher.  But an opportunist would look at this and tell you that the big money has already been made.  Sometimes it's ok to admit missing out, because when these trends come to an end you see many traders taking some serious licks.  This all boils down to preferences, but keep in mind that the multiples on these stocks are toward their higher-end and are arguably priced for continued perfection.  He's also been behind these names for some time now.

Cramer also said he thinks we’ll finally cross 13,000 this week.  Here’s his 2007 prediction from earlier this year for where the DJIA will go this year.