Sometimes stocks go down for no reason. And sometimes they go down even when there is “tremendous insider buying,” making the downturn even more peculiar, Cramer said. Take NuStar GP Holdings , for example. NuStar is an oil and gas pipeline company that went down 2% today for no apparent reason, Cramer said. Why would a typically conservative stock get slammed like that on no news? Cramer got NuStar Holdings CEO Curt Anastasio on the line to find out.
Anastasio and other top executives have recently bought NSH stock themselves – usually a good sign for investors that management is confident. Anastasio said he sees no fundamental reason for NuStar’s stock getting driven down, but speculates that it has to do with people lumping the company in with the rest of the energy sector. While there has been softness in the integrated oils lately, NuStar is in a “different business,” Anastasio said. The company moves, stores and blends oil. It doesn’t buy or sell it for the most part and there isn’t exposed to market prices. Anastasio considers NuStar more like a “toll taker,” collecting feeds through the use of its pipelines.
As far as Cramer is concerned, this is a stock that has no business being down. It has a good yield, good management and a bunch of insider buyers. “Sometimes people sell when they shouldn’t,” he said. “Not all prices are right.”
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