Jim Cramer's Mad Money Stock Recap June 18th
Coal is King: Consol Energy (NYSE: CNX), Arch Coal (NYSE: ACI), Peabody Energy (NYSE: BTU)
While initially Cramer thought the Democrats in Congress considered coal "too dirty" he recently learned they are pushing for a coals-to-liquid energy plan which will mean good things for the sector. "America is the Saudi Arabia of coal," he said. "Our coal sources are safer, cheaper and more stable than our sources for oil." In addition, China is starting to import U.S. coal which will mean big international business for coal companies. While Goldman Sachs downgraded coal because they don't have confidence in coal-to-liquids technology, Cramer said this shouldn't matter to investors. He likes CNX, a relatively safe investment with high cash margins, 64 years of reserves and a chance to be bought, and said ACI is more speculative. Cramer's favorite coal is BTU, since 8% of its reserves are in Australia, and it is the obvious supplier to China, which is dispensing with its coal tariff. The stock is cheap and the company is "leaner and meaner," since it is spinning off assets with slow growth. In addition BTU has great "visibility."
Parting is Such Sweet Sorrow: Yahoo! (NasdaqGS: YHOO)
Now that Terry Semel, CEO of Yahoo, is leaving, Cramer removed him from his Wall of Shame and predicted the stock would climb higher after its 4.6% gain in after-hours trading to $29.42.
Plenty of Room for LodgeNet Entertainment (NasdaqGM: LNET)
This supplier of interactive services to hotel rooms earned $23.43 per room last quarter, has since declined because of profit-taking, and Cramer would consider buying LNET but not after-hours and only with limit orders. LNET improved its market share and international exposure though its On Command acquisition, and is poised to become a "powerhouse of in-room services." The company is looking at hosptials and time shares.
Published By SeekingAlpha
While initially Cramer thought the Democrats in Congress considered coal "too dirty" he recently learned they are pushing for a coals-to-liquid energy plan which will mean good things for the sector. "America is the Saudi Arabia of coal," he said. "Our coal sources are safer, cheaper and more stable than our sources for oil." In addition, China is starting to import U.S. coal which will mean big international business for coal companies. While Goldman Sachs downgraded coal because they don't have confidence in coal-to-liquids technology, Cramer said this shouldn't matter to investors. He likes CNX, a relatively safe investment with high cash margins, 64 years of reserves and a chance to be bought, and said ACI is more speculative. Cramer's favorite coal is BTU, since 8% of its reserves are in Australia, and it is the obvious supplier to China, which is dispensing with its coal tariff. The stock is cheap and the company is "leaner and meaner," since it is spinning off assets with slow growth. In addition BTU has great "visibility."
Parting is Such Sweet Sorrow: Yahoo! (NasdaqGS: YHOO)
Now that Terry Semel, CEO of Yahoo, is leaving, Cramer removed him from his Wall of Shame and predicted the stock would climb higher after its 4.6% gain in after-hours trading to $29.42.
Plenty of Room for LodgeNet Entertainment (NasdaqGM: LNET)
This supplier of interactive services to hotel rooms earned $23.43 per room last quarter, has since declined because of profit-taking, and Cramer would consider buying LNET but not after-hours and only with limit orders. LNET improved its market share and international exposure though its On Command acquisition, and is poised to become a "powerhouse of in-room services." The company is looking at hosptials and time shares.
Published By SeekingAlpha
posted by Stock Administrator @ 7:31 AM
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