Web Editor, "Mad Money"
Forget going green. Cramer went green back in April. He picked what he thought were the companies best positioned to profit from this latest trend in corporate responsibility, and they’re up 63% as a group since.
But it’s “Green is Universal” week here at NBC Universal, so Cramer is revisiting his portfolio. Here’s the breakdown on how each performed and what he thinks is in store for the future of these stocks.
Shaw Group is up 143% from about $30 to $74. Americans may not like nuclear power, Cramer said, but it’s one of the least environmentally damaging ways to create energy. SGR has a backlog of coal power contracts, and on Oct. 11, it beat earnings estimates by a whopping 27 cents a share. Cramer’s sticking with it.
Foster-Wheeler is up 99% since April 16, the day Cramer picked it as one of his green plays (though he said that the stock is more of an infrastructure play than a green one). FWLT also reported a blowout Q2. Cramer called it one of his favorites.
BorgWarner, which makes fuel-efficient diesel turbochargers for autos that basically help lower emissions, is up 38%, and it still has legs. The company announced its business backlog for 2008-2010 is 15% higher than it was for 2007-2009. It’s worth holding onto, Cramer said.
OM Group was the sole underperformer, dropping 5% since April 20. Cramer blamed the dip on uncertainty in cobalt pricing and the company’s unwillingness to comment on its cobalt outlook. Still, OMG’s most recent quarter was good, and the stock seems to have already started to bounce back from its lows.
First Solar skyrocketed $21 alone today, thanks to landing a billion-dollar contract. The stock has climbed 14% since Cramer’s recommendation, and he doesn’t see a slowdown in sight. FSLR reports Wednesday, and Cramer recommends waiting until after to buy a position in the stock. It’s not that he doesn’t believe in First Solar, he said, he just wants to be conservative.
Fuel Tech guided down after reporting earning Tuesday morning, so Cramer can’t recommend this stock right now – even though it’s up 31% since April. It’s just too volatile, he said.
MEMC makes the silicon that solar and semiconductor companies need so badly. Cramer figures the company will grow 52% over the next two years, and the stock is trading at only 14 times what he expects it to earn in 2009. That’s a cheap stock, Cramer said, and the run isn’t over.
Lastly, Tatra Tech is up 14% since April, and Cramer expects it to continue its slow-but-steady growth. The stock his a 52-week last week, and management is taking steps to expand the company globally.
Cramer doesn’t think there’s a single stock in his green portfolio whose run is over, and that proves green is great business.
Questions for Cramer? firstname.lastname@example.org
Questions, comments, suggestions for the Mad Money website? email@example.com