Jim Cramer Gives His Opinion On Caterpillar, KB Home, Lennar, Kansas City Southern And General Electric

Jim Cramer spoke on CNBC's Mad Money about Caterpillar Inc. CAT and its stock performance after earnings. He thinks that there is more downside for the mining and construction equipment maker because its guidance is way too optimistic.

Caterpillar has invested a lot in machines for extracting coal and since the coal companies are struggling the demand for the machines is going down. Heavy machinery for extracting crude oil is also a problem, because it doesn't pay off to use the machinery when crude oil price is so low. The only successful segment for Caterpillar is the construction equipment, but it is only performing well domestically.

Cramer has also answered a couple of phone calls during the show. A viewer asked him about KB Home KBH and he said that the stock is doing well, but Lennar Corporation LEN is in a better situation.

Kansas City Southern KSU is not on his selling list because it is trading too low.

Nobody seems to care at the moment about 3.6 percent yield in General Electric Company GE, but one day they will and the stock will move higher, said Cramer. He thinks that the management is doing everything right.