Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program,Monday April 21. Click on a stock ticker for more analysis.
Rising oil prices are good for green stocks, and Cramer noted the eight environmental plays in his portfolio: FSLR, SGR, WFR, TTEK, BWA, OMG and FTEK, are up 76.8% compared to a negative 5.5 % for the S & P 500. The biggest green name is FSLR, up 367.8% since April 2007. Cramer says FSLR will be to solar what Intel was to chips, since the company produces its own cheaper panels without silicon. FWLT which was and is Cramer's favorite infrastructure play, has risen 97% in the past year and is producing clean coal. Although the company has had a huge gain, it is still off its high and Cramer would buy FWLT. Although The Street lacks confidence in SGR, "nuclear is the heart and soul of this one," and Cramer would stick with it. Cramer would sell BWA, which is too levered to the auto industry and WFR which has had a big run on silicon, but is due for a decline.
Lagging Behind: Tetra Tech, Fuel Tech, OM Group, ITT Corp. (NYSE:ITT)
Three of Cramer's green picks, TTEK, FTEK and OMG underperformed the other environmental names. Cramer would hold TTEK even though it is up only 1.6% because of its potential to benefit from a global water shortage. The company has several government contracts to deal with this issue and has recently purchased a wind energy company. FTEK has been a volatile stock, but Cramer thinks its next move is up. The company will benefit from a Democrat in the White House, and no matter who is the next President, clean air legislation due to begin next year will be good for FTEK's business. Insider buying and Asian exposure also make FTEK a buy. OMG is up just 8%, but was down 26% last year. Cramer thinks investors should take profits in OMG and not buy, since the producer of hybrid auto-batteries is dependent on the price of cobalt and the troubled auto industry. Cramer took some calls and to a caller who said water will be the new oil, Cramer suggested ITT, although he usually doesn't like water plays. He told another caller he would stay away from Chinese energy plays, because they have yet to bottom.
IPO: Intrepid Potash (NYSE:IPI)
Agriculture plays such as Potash, Mosaic and Agrium have been so good they are "scary" and Cramer would invest in new IPO Intrepid Potash whose offering is going through Morgan Stanley, Merrill Lynch and Goldman Sachs. The advantage the new IPO has over Potash is Intrepid is the only Western pure play on potash and has lower production costs. While Cramer thinks the stock will go higher than $34, he would use this number as a ceiling.
One e-mailer lamented about the delay of the XMSR/SIRI merger and Cramer said the holdup has "reached the stratosphere of benign neglect." When another e-mailer criticized Cramer for calling Google "dead money" Cramer admitted his error and said he, like the shorts, had been paying too much attention to information he got from comScore. He resolved not to use information from that source again. Finally, Cramer said KO has not risen because many people are declaring the end of the recession before it has begun. Cramer would use the decline to buy KO.
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