Jim Cramer had interesting comnments about the construction of new power plants and the build-out of energy infrastructure on last night's Mad Money. Here's the excerpt from our one-page Mad Money summary:
The energy infrastructure sector is in a fantastic long-term bull market. TXU Corp. (NYSE: TXU) announced last week that it plans to build 11 new coal plants at a cost of $10 billion. TXU has chosen Fluor Corporation (NYSE: FLR) and Bechtel (privately owned) for the work. Subcontractors are Caterpillar Inc. (NYSE: CAT) and Terex Corporation (NYSE: TEX). Other beneficiaries: McDermott International, Inc. (NYSE: MDR) and Foster Wheeler Ltd. (NASDAQ: FWLT) sell pollution-reducing equipment for coal plants, ABB Ltd. (NYSE: ABB) provides power plant automation systems, InfraSource Services, Inc (NYSE: IFS) provides transmission infrastructure, and SPX Corporation (NYSE: SPW) provides cooling towers.
Quick comment: Jim Cramer isn't the only person to be recommending the power plant sector and its suppliers. Gregory Zuckerman recently made the case for high sulfur coal stocks in the WSJ, and MacKenzie Davis, Co-manager of the RS Global Natural Resources Fund, recommends coal companies in the most recent edition of Barron's.