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Put Up Those NukesJim Cramer is bullish on nuclear power, and he's bullish on Cameco ( CCJ), he said Wednesday on his "Mad Money" TV show. The U.S. may not be building any nuclear power plants, but there's a bull market in nuclear around the world, said Cramer. Uranium prices are up 56% in the last year, and Cameco is the world's largest producer of uranium with a 20% market share, he said. Even though Cameco's stock has had a big run this year, it is down about 10% from its 52-week high, said Cramer, who doesn't believe the run is over. Nuclear power might be the biggest story of the next decade, he said. Cramer is not a fan of nuclear-enrichment company USEC ( USU) even though its stock is near its 52-week low. Don't be tempted to buy the stock, he said. It is worst of breed. It is much better business to be a uranium supplier like Cameco than to be a uranium processor like USEC, he said. Cramer also looked at General Electric ( GE) as a possible play on nuclear power. But, GE's nuclear power plant construction business is too small a piece of the overall company, he said. The pure play is Cameco, said Cramer. Commenting on wind power, which is also in bull market mode, Cramer said that pure plays are totally elusive. United Technologies ( UTX) and GE both have wind-power businesses, but again, they are just small pieces of their overall businesses.
Malt ShopBeer sales in the U.S. may be going flat, said Cramer, but Japan's Kirin Brewery ( KNBWY) has a hot new product Cramer believes will send the stock higher. Kirin has developed a soybean-based beer that isn't subject to Japan's "malt tax," and the beer has turned out to be very popular, he said.
The beer was introduced to the market in April and, by August, sales had tripled, he said. Kirin raised its malt-free beer guidance by 50% on its most recent conference call. Kirin also has soft drinks and a biotech subsidiary that "might have something hot for kidneys," he said. Japan's parliament may be changing the malt-tax laws to include soybean-based beer, so keep an eye out for any developments there, said Cramer. Commenting on Constellation Brands ( STZ) and Fortune Brands ( FO), Cramer says beer, wine and even most hard-liquor sales have been poor over the last two months.
Bottoming OutTech may be ready to bottom as early as Friday, said Cramer. Things are too negative, he said. Cramer can tell because his email is reflecting "visceral hatred." Cramer has more sophisticated market sentiment tools at his disposal. But, his email is often the best indicator, he said, because he gets thousands of emails a day, and he reads all of them. Cramer advises staying calm and taking advantage of the "buyer's sale" because we are just a day or two away from a bottom.
Power GenerationNRG Energy ( NRG) CEO David Crane joined Cramer by telephone. Cramer asked Crane about NRG's announced acquisition of privately held power generator Texas Genco. Crane said the acquisition would make NRG the second biggest power generator in Texas. Cramer asked Crane what makes NRG attractive as an investment, given that it is a utility company but does not pay a dividend like most utilities. Crane said NRG is a company operating more in the competitive power market as opposed to a traditional utility. "We're looking to reinvest our positive free cash flow into building new plants," said Crane. He said the U.S. is too dependent on natural-gas power plants. "We want to add to our portfolios of solid-fuel-fired plants because that's what the country needs." "What are the prospects in this country for nuclear energy?" asked Cramer. Crane said new nuclear power plants in the U.S. are at least 10 to 15 years off, if they happen at all. They are not part of the near-term energy solution, he said. Coal, however, "has to be part of the near-term solution," said Crane. " Texas Genco and NRG are both strong in that area," he said. Cramer summed up the interview by saying that NRG is a great growth story and don't be turned off because the company doesn't pay a dividend.
BullishCramer was bullish on Chico's FAS ( CHS), Urban Outfitters ( URBN), Hershey ( HSY), Progress Energy ( PGN), PNM Resources ( PNM), FPL Group ( FPL), SanDisk ( SNDK), L-3 Communications ( LLL), FMC Technologies ( FTI), Coley Pharmaceutical Group ( COLY), GFI Group ( GFIG), Schering-Plough ( SGP), Syneron Medical ( ELOS), Vulcan Materials ( VMC), Florida Rock Industries ( FRK), Rinker Group ( RIN), Martin Marietta Materials ( MLM), Vertex Pharmaceuticals ( VRTX), KeySpan ( KSE), Intel ( INTC), IntraLase ( ILSE), Pike Electric ( PEC) and Genentech ( DNA).
BearishCramer was bearish on IMAX ( IMAX), Corning ( GLW), Mine Safety Appliances ( MSA), Rowan ( RDC), Eli Lilly ( LLY), Merck ( MRK), Pfizer ( PFE), Pioneer Drilling ( PDC), Millennium Pharmaceuticals ( MLNM) and AMR ( AMR).
|1.||Pigs Get Slaughtered||2.||It's OK to Pay the Taxes|
|3.||Don't Buy All at Once||4.||Buy Damaged Stocks|
|5.||Diversify to Control Risk||6.||Do Your Homework|
|7.||Don't Panic||8.||Buy Best-of-Breed|
|9.||Defend Some Stocks||10.||Don't Bet on Bad Stocks|
|11.||Own Fewer Names||12.||Cash Is for Winners|
|13.||No Regrets||14.||Expect Corrections|
|15.||Know Bonds||16.||Don't Subsidize Losers|
|17.||No Room for Hope||18.||Be Flexible|
|19.||Quit When Execs Do||20.||Patience Is a Virtue|
|21.||Be a TV Critic||22.||When to Wait 30 Days|
|23.||Beware the Hype||24.||Explain Your Picks|
|25.||Find the Bull Market|