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Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Monday November 19.

The Problem with Natural Gas: EOG Resources (NYSE:EOG), Devon (NYSE:DVN), Chesapeake (NYSE:CHK), Clean Energy Fuels (NASDAQ:CLNE)

If natural gas is so cheap, clean and plentiful, why isn’t it being used? There are many obstacles to its adoption as a mainstream fuel. Great natural gas finds were discovered, but drilling drove down the price of the fuel. EOG Resources (EOG) saw this coming, and expanded into oil, while companies like Devon (DVN) and Chesapeake (CHK) have been punished for having large exposure to natural gas.

One of the greatest obstacles to natural gas adoption is the lack of natural gas fueling stations. While Clean Energy Fuels (CLNE) is building out such stations, there is an enormous amount of work ahead before long-distance drivers can feel that driving on natural gas is convenient. Natural gas adoption works for garbage trucks that drive relatively short distances, but not for those traveling on the interstate. Technology is being developed to allow for fueling at home, but much more time is required to perfect the technology, and at-home fuelers could run $500. Finally, there is not a national mandate to encourage the development of natural gas as a mainstream fuel, and without government backing, Cramer thinks that natural gas will not contribute as much as it should to the country’s energy problem.

Lowe's (NYSE:LOW), Home Depot (NYSE:HD), Sherwin Williams (NYSE:SHW), Whirlpool (NYSE:WHR), Stanley Black and Decker (NYSE:SWK), Harley Davidson (NYSE:HOG), Polaris (NYSE:PII), Dick's Sporting Goods (NYSE:DKS), Phillips Van Heusen (NYSE:PVH), Apple (NASDAQ:AAPL), Toll Brothers (NYSE:TOL), Amazon (NASDAQ:AMZN), AT&T (NYSE:T), Lockheed Martin (NYSE:LMT), Linn Co (NASDAQ:LNCO), Market Vectors Oil Services ETF (NYSEARCA:OIH), Schlumberger (NYSE:SLB), Starbucks (NASDAQ:SBUX), Teavana (TEA), Illinois Tool Works (NYSE:ITW), Boeing (NYSE:BA)

With a glimmer of a possible compromise on the fiscal cliff issue, stocks moved up on Monday.

Lowe's (LOW) reported a strong quarter, and Cramer thinks both Lowe's and Home Depot (HD) will see upside. Other beneficiaries will be companies whose goods appear on Lowe's and Home Depot's shelves: Sherwin Williams (SHW), Whirlpool (WHR) and Stanley Black and Decker (SWK). These companies will benefit from homeowners' needed repairs after Hurricane Sandy, the recovery of homebuilders and easing of fiscal cliff worries. Discretionary plays that have been hit, including Harley Davidson (HOG), Polaris (PII) and Dick's Sporting Goods (DKS), might see a comeback. As retail recovers. Phillips Van Heusen (PVH) is up 58% for the year and is likely to have a bullish 2013. Apple (AAPL) has been clobbered over tax uncertainty, but it is already up 10% since Friday, and is likely to head back up. Housing stocks, such as Toll Brothers (TOL), are likely to bounce back. While some may want to buy Amazon (AMZN), Cramer would use caution, since he expects high-multiple stocks to sell off.

Investors were worried about dividend stocks, but with a compromise, the following are buys; AT&T (T), MLPs like Linn Co (LINCO), which yields 7.6% and Lockheed Martin (LMT). Lockheed Martin benefits both from the easing of worries about increased dividend taxes and putting defense spending cuts on hold. Another defense stock Cramer likes is Boeing (BA), which is also levered to the strong aerospace sector.
Cramer took some calls:
Cramer would play oil with calls in the ETF OIH and Schlumberger (SLB).

Starbucks (SBUX) is making the winning acquisition of Teavana (TEA) and should see some upside.

Illinois Tool Works (ITW) is a stock Cramer likes, and even though CEO David Spear passed away: “They won’t skip a beat … they have always been a favorite of mine.”

Briggs & Stratton (NYSE:BGG), Generac (NYSE:GNRC)

In the aftermath of Hurricane Sandy, people realize that terrible weather is going to be a reality going forward. After millions lost power, many consumers want to be sure they are prepared for the next storm. Generac (GNRC) makes power generators, and has seen an uptick since Hurricane Sandy. However, Briggs & Stratton (BGG) has not seen much upside at all. One reason may be that the company is only 10% levered to power generators, but increasing demand for these generators will create upside. BGG’s other products are connected with housing, and are sold at Lowe's and Homes Depot stores. The positive quarters from both companies is a good indication that BGG may be on an upward path. The company reported a disappointing quarter in October, but said, ironically, one reason was the decent weather; this changed a few weeks later with Hurricane Sandy.

Avis (NASDAQ:CAR), ZipCar (ZIP), Hertz (NYSE:HTZ), Dollar Thrifty (NYSE:DTG), Ford (NYSE:F), Garmin (NASDAQ:GRMN)

Cramer dedicated a segment to discussing the rental car space, which is benefiting from increased consolidation. Hertz (HTZ) acquired Dollar Thrifty (DTG), and jumped 8% on the news; this leaves only four main players: Enterprise, which is private, Avis (CAR), ZipCar (ZIP) and Hertz. ZipCar is down 30%, and is not a stock Cramer wants to buy. While it did come up with the idea of hourly rentals, the concept is not at all proprietary, and can be easily imitated. The stock has dropped from $18 to $7, and could fall further. Hertz has risen 18% for the year, but it still has significant upside, since the acquisition gives the domestic business a bigger piece of its pie, and takes some of the edge off of Hertz’s exposure to a weakened European market. Avis is cheaper in price, but Hertz, with the new merger is better, since the deal will cut Hertz’s operating costs and boost earnings per share.

Cramer took some calls:

Ford (F) is too levered to Europe to be an “up” stock any time soon.

Garmin (GRMN) is cheap, but it will stay cheap until it gets a catalyst.

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Source: Cramer's Mad Money - The Trouble With Natural Gas (11/19/12)