Cramer's 'Mad Money' Recap: Coaling a Bottom
Click here for an archive of Cramer's "Mad Money" recaps.
This week's selloff in energy stocks is an opportunity to buy, said Jim Cramer Friday on his "Mad Money" TV show.
It's hard to call an absolute bottom, said Cramer, but he believes a bottom is close at hand if one hasn't already occurred. Cramer would look to buy energy stocks Monday morning, and if the stocks go lower, he would look to buy more.Although oil is still in bull market mode, said Cramer, it's no longer the best deal. His favorite energy play is coal, which was down more than oil this week, he said, calling coal stocks cheap at these prices. The best of breed among coal stocks is Peabody Energy (BTU), said Cramer. Peabody was down about 12% for the week, ending the regular trading session Friday at $74.65. Even though the stock was down, the fundamentals for Peabody haven't changed, he said. Consider yourself lucky with the selloff, said Cramer, and "get yourself some Peabody Energy while it's still under $80." Over $80, though, and Cramer would look to take some profits. In response to a question about Fording Canadian Coal Trust (FDG), Cramer said Fording should be bought. Fording has the biggest dividend among coal stocks, he said, while Peabody is the best of breed. Commenting on KFx (KFX) and Arch Coal (ACI), which have together announced a plan to build a clean-coal processing plant, Cramer said he is not a fan of either company. Cramer said KFx is too promotional and that the company has the "highest press release-per-day ratio" of any company he's seen since the dot-com era.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV