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Market players should always pay attention to Congress for ideas on how to invest your money, Jim Cramer told viewers of his "Mad Money" TV show Monday.
Previously he thought the Democrats would find coal "too dirty," but after reading a recent article in
The Washington Post
on how the Democrats are pushing for a coal-to-liquids energy plan, it seems to Cramer that they too have jumped on the coal bandwagon.
"America is the Saudi Arabia of coal," he said. "Our coal sources are safer, cheaper and more stable than our sources for oil." Plus, China is going from an exporter to an importer of coal next year, Cramer pointed out. This means coal is a "ROWer," or rest-of-the-world play, with China being a large consumer.
It's true that Goldman Sachs downgraded the coals recently, he said. But instead of selling these stocks, investors should thank the analysts at Goldman for the gift of lowering these stocks and making them buying opportunities.
Goldman is saying that the coal-to-liquids technology is a "pipe dream," Cramer said. But at this point, he believes that investors shouldn't care. All that matters right now is that the anticoal Democrats are now getting on board.
As runner-up positions on coal, Cramer suggested checking out
If he had to choose, Cramer said he'd go with Consol, because it has the highest cash margins and because much of its coal production is "locked in," making it more stable. In addition, it has about 64 years worth of reserves and could even be a takeover target, he said.
"Coal is still king," Cramer said. If people feel like taking a chance, Arch Coal is for them, and if they don't, they should take a look at Consol, which is "better balanced and less risky."
But Cramer said his favorite coal name is
, a stock that was down today on Goldman's downgrade.
Peabody, he said, is "well placed" to supply coal to China and India, with 8% of its reserves in Australia. Plus, China is getting rid of its import tariff on coal, which is good for foreign competitors such as Peabody that want Chinese exposure.
Moreover, the stock is "cheap" now and "well behind" where it should be, given the spike in oil, Cramer said. Peabody has been smart, acquiring and divesting itself of different assets to become a "leaner, meaner" coal company, which is what Wall Streeters look for.
It is spinning off its slower-growth assets and focusing on its faster-growth ones.
Further, Peabody has "great visibility," he said, and is set to establish the first coal-to-liquids facility in the U.S. this year. It is the less-risky way to play the technology, Cramer said.
Another Brick Off His Wall
In January, Cramer put
chief Terry Semel on his "CEO Wall of Shame." Today Semel finally stepped down, taking on the role of nonexecutive chairman, with co-founder Jerry Yang assuming his position.
Cramer said he expects a few more points of upside for Yahoo!, which he owns for his charitable trust,
Action Alerts PLUS, before the stock is done with its rally. The stock gained 4.6% in recent after-hours trade to $29.42.
Don't Sweat LodgeNet
is a small $750 million company that people should consider getting into, Cramer said. But it is also a stock that people should be careful with, use limit orders for and not buy after hours, he stressed.
LodgeNet, which offers interactive services to hotels and motels, earned $23.43 per room last quarter, most of which came from movie viewing. Now shares have pulled back, which is why Cramer said he's highlighting it.
LodgeNet pulled back because of profit-taking, since its a big run-up, but now Cramer believes that the company is ready to go higher. Another major move should be coming, Cramer predicted, as summer vacation season kicks in.
In addition, its recent merger with On Command helped boost its market share. Now, the combined company is a "powerhouse of in-room services," Cramer said. LodgeNet is "acquiring up the food chain," and that's working favorably for the stock, he said.
The On Command acquisition gave LodgeNet international exposure, as well as 90,000 new customers in Canada and 20,000 in Mexico, Cramer said.
Also, LodgeNet has lot of room to grow as it starts offering more services, he said. Additionally, the company is looking to get into time shares and hospitals.
In his "Mad Mail" segment, Cramer told a viewer that he likes
, which he said reported a "great" quarter. Also OK in the tech sector is
, he said.
In addition, Cramer named his "four horsemen in tech" as his favorite stocks in the sector:
Research In Motion
He also told the viewer to take profit in
During his "Sudden Death" round, Cramer was bullish on
He was bearish on
Cramer was bullish on
Golden Star Resources
Cramer was bearish on
Melco PBL Entertainment
For more of Cramer's insights during the Lightning Round, click here
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At the time of publication, Cramer was long Hologic, Fannie Mae, Yahoo! and Caterpillar.
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