Back on April 2, the Supreme Court handed down a decision that is the basis for Cramer’s weeklong “Green Day” series, in which the Court effectively made it profitable to start investing in companies that help cut back on pollution and clean up the environment. Cramer thinks companies that are levered to do this are going to start getting much bigger stock multiples and thus higher prices, which is why he’s been building a Green Day portfolio that he hopes will let you play this new trend. He’s already focused on plays for cleaner power plants, solar power and more efficient cars. Today, he’s talking about Tetra Tech – a water company that’s also expanding into alternative energy like wind and nuclear power.
Tetra Tech is a consulting and engineering company that’s levered to the scarcity of fresh, clean water. It’s a water company, but not a water utility. Those are no good, Cramer says.