Jim Cramer always scours the market looking for stocks poised to outperform. But rarely does a bankrupt company fill him with so much excitement.
This one "has a ton of internal catalyst that could catapult it higher," Cramer exclaimed. "I'm talking about W. R. Grace, (TICKER: GRA) a $6.3 billion specialty chemical company."
Of course Cramer recognizes that investors may find the bankruptcy issue somewhat concerning. But in this case, he says there's more than meets the eye.
"A decade ago, in 2001, W.R. Grace filed for Chapter 11 bankruptcy because asbestos claims against the company were getting out of control," Cramer explained. "Of course, the company no longer makes any asbestos related products, but they had a ton of lingering lawsuits, and the idea was that in bankruptcy, W.R. Grace could consolidate all of the claims and deal with them under one central umbrella."
The strategy worked and the company is now in the final stages of the bankruptcy process.
"W.R. Grace is expected to emerge from bankruptcy sometime in the fourth quarter and I think the stock is a buy before that happens," Cramer said.