RealMoney Radio: Considering Coal

We're only "one country away" from $100-a-barrel oil, Jim Cramer told his "RealMoney" radio show listeners Thursday, which means that the U.S. may finally turn to other energy sources.

If this happens, he said that the winner would be coal, since it is in abundant supply in North America.

So, he told listeners to take a look at Sasol(SSL Quote), which pioneered a system that changes coal to oil. Plus, the company just got a huge contract to do work for China.

His favorite coal mining company is Peabody Energy(BTU Quote), which has the lowest sulfur coal. He said that if listeners are worried that Peabody has run too high, he would also bless buying Arch Coal(ACI Quote).

He said that companies levered to ethanol are coming in today on worries that the U.S. will lift its tariff on Brazilian ethanol. Brazil wants to ship to us, he said, but we levied a tariff to protect U.S. corn growers.

He likes Archer Daniels Midland(ADM Quote) as a play on ethanol, as well as MGP Ingredients(MGPI Quote). Even though this company doesn't yet make ethanol, he said that it can.

Cramer said that Deere (DE Quote) and Agco(AG Quote) are the equipment plays on this trend. Rail companies should also go higher because they are used to transport coal and ethanol to the places where they are in demand.

In this sector he likes Union Pacific(UNP Quote) and Burlington Northern(BNI Quote).

Making the Rounds

Turning from energy to earnings, Cramer gave listeners a review of some of the day's most significant quarterly results, beginning with Whole Foods(WFMI Quote). The company had missed earnings expectations for two straight quarters, but this time around it exceeded expectations. Plus, the company scrapped its dividend plans and reported 12% growth vs. forecasts for 9% growth.

"I think there's something big happening," he said. So, even though Whole Foods move up $6 after the announcement, he believes it could go to $80 from its current level near $69.