Everyone wants to buy natural gas stocks today. Hey, why not? It's cold out there. The companies are preannouncing to the upside. Nat gas is at 10 bucks. The sky is the limit?
Hold it, excuse me for wanting to be a little contrary, but I want you to hit up a six month chart for
Colgate(CL Quote - Cramer on CL - Stock Picks). Go ahead. You see that dip to $44, that horrid decline to near oblivion? That was when the euro was crashing every day. Colgate does a lot of business in Europe so it had to bring down earnings because of the currency translation.
The exquisite moment to
buy Colgate was when it speculated, in the $40s, that the continual decline in the euro would hurt earnings badly. Of course, we know what happened after that. The stock troughed right there and took off. It closed at $62 Tuesday, because right then, at $44 when everyone was worried so much about the euro, it bottomed! That's the way it works in our business. When oil was at $38 there were people running around saying we were headed to the $40s and that crisis was upon us. It peaked right after.
The same thing is about to happen to natural gas. I think it is time to go from these stocks. Right here. Right now. They are the upside-down version of Colgate at $44.
It is plain as day.
Jim Cramer
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