Cramer's 'Mad Money' Recap: Scouring Appalachia for Gas

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Jim Cramer is not about to give up on oil or natural gas stocks despite the selloff Wednesday he said on his "Mad Money" TV show.

In fact, Cramer is recommending Appalachian basin natural gas producer Equitable Resources (EQT) after Chesapeake Energy (CHK) announced Monday it will acquire fellow Appalachian basin natural gas producer Columbia Natural Resources.

Cramer believes Equitable is a likely takeover candidate because, of the companies he views as possible targets, Equitable has the largest proven natural gas reserves in the region.

Two other companies operating in the Appalachian basin Cramer likes but which he believes are less likely to be takeover targets are Range Resources (RRC) and Cabot Oil & Gas (COG). Both are excellent companies, said Cramer. However, Range Resources has only about 65% if its natural gas reserves in Appalachia, and Cabot Oil & Gas has only about 46% of its reserves in the region.

NGAS Resources (NGAS) is another good natural gas company operating in Appalachia, said Cramer, but it is "too darn expensive," he said.

Finally, Cramer threw in the mix Consol Energy (CNX), but said Consol is too big to get taken over. It also has reserves of high-sulfur coal, of which Cramer is not a fan.

Storm Benefits for Thor, Oshkosh

Cramer is bullish on mobile home/RV manufacturer Thor Industries (THO) for a trade. The Federal Emergency Management Agency has announced plans to purchase 70,000 mobile homes to house victims of Hurricane Katrina, said Cramer. Thor has the biggest market share of mobile trailers and is sure to benefit, he said. At Wednesday's regular session closing price of $32.82, the stock is still about where it was when FEMA made the announcement, Cramer said. "You need to buy it for a trade."

Cramer is also bullish on Oshkosh Truck (OSK) for a trade. Oshkosh makes emergency command vehicles and concrete mixers. Cramer predicts the federal government will purchase plenty of emergency command vehicles to be "totally prepared for the next disaster." Oshkosh's concrete mixer business should also "benefit handsomely from [Congress'] ... pork-laden highway bill."