The company reported a "great quarter and has a lot of potential," Cramer said.
The Tao of Dow
Cramer said that he has a stock with insider buying that can make you some money.
First, he clarified that a stock that has insider buying doesn't necessarily make people money. For example, Cramer said insiders are buying
Vonage (VG Quote - Cramer on VG - Stock Picks), but Cramer said that is a stock that's not going to make anybody money.
"The insiders are buying it because they want to provide investors with a false sense of confidence," he said. In fact, this is the "worst-performing IPO of the year."
On the other hand, when insiders started buying stock at
Dow Chemical (DOW Quote - Cramer on DOW - Stock Picks), shareholders there caught a quick gain.
Similarly, Cramer said the next stock with insider trading that might make market players money is
Dynegy (DYN Quote - Cramer on DYN - Stock Picks).
Cramer, who has been a consistent backer of this stock, said it's "still not out of steam."
Not only does the stock have "massive insider buying," but upon doing further homework, Cramer believes it is due for a takeover bid because first, its financials are improving, and second, its industry is consolidating.
"Right now, Dynegy is going through a complicated restructuring," he said. "It's been selling off its midstream operations and paying off its debt aggressively."
TheStreet.com Staff
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