Dynegy Has the Power

No, it is not too late to buy Dynegy (DYN - commentary - Cramer's Take). This stock has been compressed down beyond belief after the very unfortunate pricing of the 97 million shares of DYN that Chevron (CVX - commentary - Cramer's Take) owned. It was an afterthought for CVX, but I think Goldman (GS - commentary - Cramer's Take) ended up lugging a lot because of the market breakdown.

Dynegy is at first an earnings story. If it is a warm summer and there is a lot of power plant usage, you have a good earnings spike.

Longer term, though, it is not an earnings story, it is an asset story, mainly a scarcity asset story. It's not just refineries that are hard to build in this country. People hate being next to power plants. Dynegy has a ton of them, especially after its most recent merger.

Dynegy can make disposals, like the one it did last month, for years and years and years, and all that happens is the plants go up in value as our nation is in need of power. We are a price-taker in this country, as Bruce Williamson, the fabulous CEO, stressed to me on the set of "Mad Money," and that means Dynegy can raise rates with impunity.

This is an amazing moment to buy a stock that was knocked down slowly for technical reasons involving a botched underwriting. I would pull the trigger right here.

Random musings: Rosetta Resources (ROSE - commentary - Cramer's Take) is down off of small Calpine news. I would back the truck up. ... Nice move by McMoran Exploration (MMR - commentary - Cramer's Take), not that anyone cares. ... Making a small, controversial buy in ActionAlerts PLUS. ... Garmin (GRMN - commentary - Cramer's Take) is becoming a must-own for all the momentum guys. Should start thinking of that one as the anointed...

At the time of publication, Cramer was long Goldman Sachs.

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Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS. Watch Cramer on "Mad Money" weeknights on CNBC. Click here to order Cramer's latest book, "Mad Money: Watch TV, Get Rich," click here to order his book, "Real Money: Sane Investing in an Insane World," click here to get his second book, "You Got Screwed!" and click here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by clicking here.

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