El Paso Is a Gas -- Cramer's Mad Money (4.22.08)

Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Tuesday April 22. Click on a stock ticker for more analysis.

El Paso (EP)

In honor of Green Week, Cramer discussed natural gas as the cleanest fuel out there and said EP was the cheapest way to play natural gas. EP has lagged behind its peers, rising just 3% while comparable companies have jumped 31% .The Street is confused by EP's combination of drilling and production and pipeline segments, said Cramer. Its exploration and production business has seen 92% revenue growth and the company is investing $4 billion in its pipeline. He also likes EP's insider buying.

CEO Interview: Gene Isenberg, Nabors (NBR)

While Isenberg once said on Mad Money that the time wasn't right to invest in his company, he now says the climate has changed and North American onshore drilling has picked up thanks to giant fields like Marcellus shale opening up. Rising costs of oil and coal have also helped the company as well as demand for rigs. Although the stock jumped to a 52-week high on its earnings report, Cramer still thinks the stock is cheap enough to buy.

Itron (ITRI)

Itron, producer of meters that measure electricity and water and facilitate conservation, is the leader in its industry and controls 50% market share in the U.S and 20% internationally. The company is due to receive more contracts in the U.S. and abroad and is "massively underpriced," said Cramer, noting the company trades at just 22 times its earnings, but has a 24% long-term growth rate.

CEO Interview: Michael Ward CSX (CSX)

Rail is an environmentally and fiscally responsible mode of transportation, and Michael Ward discussed CSX's conserving 900,000 gallons of fuel last year and how rails take millions of cars off the road. Although the company is levered to struggling auto and housing industries, the increasing demand for ethanol has made up the difference for rails, the main mode of transport for the alternative fuel and agricultural products. Ward also intends to raise the company's dividend and keep repurchasing shares.

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Comments

[Andy Singh:]

Forget El Paso, XTO is money.

2008 Apr 23 09:16 AM