Cramer's 'Mad Money' Recap: Asphalt Bundle

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Thanks to the highway bill passed by Congress this summer, the highway cycle "is on," said Jim Cramer Friday on his "Mad Money" TV show. That means asphalt will be in high demand, and Alon USA Energy (ALJ - Cramer's Take - Stockpickr) is the way to play it.

Alon is a "worst-of-breed" refining company, said Cramer, but it also has a good asphalt business, he said. Nobody pays attention to its asphalt business, said Cramer, which means opportunity for those who get in before everyone else takes notice.

The market for asphalt "is en fuego," said Cramer, with prices having doubled this year. With the closure of two competing asphalt plants in California, Alon is well-positioned to pick up the extra business, he said.

Cramer sees Alon's stock going to $26, and then he would look to sell it. Alon closed at $20.48 Friday.

In response to a question about pure plays on asphalt, Cramer said aggregate companies Florida Rock (FRK - Cramer's Take - Stockpickr), Rinker Group (RIN - Cramer's Take - Stockpickr) and Vulcan Materials (VMC - Cramer's Take - Stockpickr) were all OK.

Asked if Mexican cement company Cemex (CX - Cramer's Take - Stockpickr) might see growth in its business as a result of increasing exports to the U.S., Cramer said the rules limiting the amount of cement that can be brought into the U.S. from Mexico have not yet been relaxed. But he believes eventually they will be.

It's a Gas

Natural gas prices are on the rise, and the stock of natural gas company Williams (WMB - Cramer's Take - Stockpickr) has been going up with them. But the market has overlooked an important piece of news for Williams, said Cramer. Williams just received permission to drill up to four times as many wells on one of its prime natural gas properties in Colorado, he said. According to one analyst, the additional wells could add between $1.25 and $2.50 to Williams' share price, said Cramer. At $22.75, where the stock closed Friday, "that's 10%," he said.