This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Cramer's 'Mad Money' Recap: A Safer Market Than You Think

"We need to get off oil," Demers said, citing a recent study that not only looked at the direct impact of converting trucks to natural gas, but also the possibility of reinvigorating the entire economy around transportation and creating tons of new jobs by creating a new domestic infrastructure.

Demers said there in enthusiasm for natural gas in everything from locomotives to passenger cars, noting that Ford Motor (F) now has the capacity to build up to 20,000 F-250 and F-350 natural gas trucks just as soon as consumers want them. He said that Clean Energy Fuels (CLNE) has already proven that if you build a natural gas filling station the trucks show up, so we just need to make the investments.

When asked about federal regulations that prohibit a natural gas tender to follow a locomotive, Demers said that, in reality, the regulations don't say that you can't have a natural gas tender because no one has ever tried it before. He said there will certainly need to be new regulations written, but he's confident that those regulations can and will be written.

Cramer said Westport remains a speculative stock in his eyes. He said the true believers can buy in now, but the skeptics should probably wait for a pullback in the share price.

Time to Pounce

When a high-quality stock gets pounded because of a secondary offering, it's time to pounce, Cramer told viewers, as he recommended MarkWest Energy Partners (MWE - Get Report), a natural gas gathering and processing master limited partnership with a 6.3% yield.

Cramer explained that MarkWest got "marked down" in a big way Tuesday when the company issued an additional six million shares at $50.72 a share, it's third such offering this year. Shares of the company promptly shed 4.3% on the news and now trade below the offering price.

So why is Cramer recommending investors buy in when all three of MarkWest's secondaries have been flops? Because this time, it's different, he explained.

Throughout most of 2012 the price of oil has been falling, explained Cramer, taking shares of MarkWest along for the ride since the company specializes in natural gas liquids. But now that oil prices are heading higher, the price of MarkWest will be as well.

2 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $130.28 0.00%
AMZN $445.10 0.00%
GOOG $565.06 0.00%
MWE $69.22 0.00%
WPRT $4.46 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs