NEW YORK (TheStreet) -- "This thing is going to work," said Jim Cramer on CNBC's "Stop Trading!" segment on Tuesday, referring to the upcoming IPO of Cloud Peak Energy."
He said people are overlooking it because "they think coal's dirty" and because they think President Obama's not a coal fan. But Cramer pointed to Warren Buffett's recent purchase of
( BNI) as evidence that the IPO will be successful.
According to Cramer, the Burlington purchase is a sign from Buffett that coal's "going to be with us for a long time" and that Cloud Peak will be a "sleeper deal."
"In Buffett we trust," said Cramer. "People have to recognize that coal is here to stay, even with Obama."
Cramer further supported his position by mentioning the strength of the coal lobby and the country's "fixation with developing clean coal. Cloud Peak's coal, he said, is "the cleanest coal in the country."
Turning to retail, Cramer said the "people are missing the point." He told viewers to consider companies such as
Research In Motion
( RIMM) and
, which make expensive smartphones. "The consumer is spending," said Cramer. "They may not be spending at
, but they're willing to spend a fortune on phones."
-- Written by Rebecca Corvino in New York.
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(Editor's note: At the time of publication, Cramer owned XXX for his Action Alerts PLUS charitable trust.)