Chart provides the equipment needed to cool natural gas into a liquid form that can be stored or exported, which means its equipment is needed for a host of applications. Cramer said 25% of the company's sales comes from the equipment needed for export, while another 15% comes from equipment used in the initial processing and separation of natural gas as it is first pumped out of the ground.
Chart also has a big opportunity in China because the Chinese are planning to ramp up usage of natural gas from 4% to 10% of total energy by 2020.
Chart last delivered a five-cent-a-share earnings beat on a strong 38% rise in revenue with orders up 19%. That led to a 7% pop in the stock and helped Chart power to nearly double since Cramer first got behind the name in February 2011. Cramer said that Chart remains inexpensive, even at these levels, trading at just 23 times 2013 earnings with a 26% growth rate.
Few things are more damaging to a portfolio than a company cutting its dividend, Cramer told viewers. While this market may be forgiving about many things, mercy is rarely shown when a company cuts its dividend.Such was the case with Atlantic Power (AT), a $10 stock that was yielding over 10% when Cramer was asked about it during the "Lightning Round" on Feb. 26. At the time, Cramer said that Atlantic's 10% was a red flag because most utilities only yield around 4%. Two days later, Atlantic Power cut its dividend by 65%, sending shares lower by 40%. Cramer said investors could have seen this dividend cut coming by simply looking at the company's financials. Prior to the cut, Atlantic Power's payout ratio -- the amount of its earnings going to its dividend -- was 100%, meaning that every penny the company earned was flowing directly to its dividend. In a case like that, Cramer said either the earnings must increase or the payout must be cut. There are no other options. Atlantic Power follows another high-profile, yet easily predicted dividend cut from regional telco CenturyLink (CTL), which cut its dividend by 26% on Feb. 14, sending its shares lower by 23%.
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