If speculation that China will repeal a tax rebate for its soda ash exporters is true, that could mean a profit windfall for American firm FMC , Cramer says.
FMC, formerly known as the Food Machinery Co., is already the world’s number-two producer of soda ash, and it does so at a much lower cost than its Chinese counterparts. A repeal of the subsidy could give the company the last leg up it needs to overtake the competition.
Although there’s no guarantee this is going to happen, Cramer thinks the stock is still a good investment. FMC is riding the bull market in soda ash, driven by ever-shrinking supplies, as well as one in agriculture, where it’s a hidden play.