Less than a month ago, Bruce Williamson, CEO of Dynegy , came on Mad Money to talk with Cramer about the stock’s slide after a subsidiary of Chevron sold its stake in the power company.
Now, as Dynegy shares are surging like Cramer predicted they would – and a recent article in The New York Timeshighlighted the swelling costs of building new power plants - Williamson is back on the line.
Like the Times article indicated, it is increasingly difficult to build new power plants, Williamson said. But Cramer speculated that maybe that means the actual worth of Dynegy’s existing plants are misvalued. And if it has become so hard to build new facilities, companies like Dynegy could become able to make more money off power contracts over the long term, Cramer said.
Dynegy is not a stock to be valued on the near term, Cramer said. It should be valued on the price of all its power plants – if you do that, “you get a much higher price.”
Dynegy will report second-quarter earnings on Aug. 9.
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