Lastly, the levered speculative play is Heckmann (HEK), a scorned service company that missed its last quarter but to me remains a colossally fabulous spec on the turn.
As always, I have to remind you that the U.S. Natural Gas Fund (UNG) is not the way to play this turn, because it simply isn't a true tracker of the fuel due to issues long chronicled here in my columns as well as by Dan Dicker in other RealMoney pieces.
I don't expect immediate tightness in the fuel. There's too much of it, and that's not going to change anytime soon. But I think that a statement about how we have seen the lows makes a ton of sense -- and as my colleague Matt Horween has indicated here many times, this common-sense fuel is just too attractive to continue to plummet in price with oil trading out of control to the upside.
Action Alerts PLUS, which Cramer co-manages as a charitable trust, has no positions in the stocks mentioned.
The Switch to Nat Gas Is in the Air Posted at 1:18 p.m. EDT on Thursday, March 15. Slow and steady will win the aftermarket race. I am talking about two deals that came today, two very different IPOs. One made you a lot of money if you got in, and one could make you a lot of money if you didn't. This morning Demandware (DWRE - Get Report), cloud play on Internet commerce, and Allison Transmission Holding (ALSN - Get Report) came public. I had told you to do your best to get into Demandware because the space is hot and this could be the next Salesforce.com (CRM) of Internet commerce. The price talk was $12 to $14 and I said that it seemed reasonable, even though it is losing money, to pay up to $16 because then it would be at 5 to 7 times sales, which is as the high end of the range of similar IPOs in the space. Today it was priced at $16 and opened at $25, more than 10 times sales, an absurd level, immediately the most expensive stock in the sector. Allison Transmission, a company that is cash-flow positive on the other hand, came public at $23, opened around there and then fell a dime below it. Here's a company, spun out of General Motors (GM) and purchased by a private equity firm that has a tremendous franchise in automatic truck transmissions, a growing area in a growing cohort. Don't forget we like Cummins (CMI), a truck titan that hit a 52-week high today and we know that the truck cycle is very robust. When I interviewed Lawrence Dewey, the truck industry veteran CEO for Allison, he said that despite the tremendous revival in the truck business, the turn's only in the fifth inning, not of a preseason game but of the real deal.