Speculation Friday: Buy Thompson Creek Metals
For his Speculation Friday pick, Cramer told Home Gamers to get acquainted with Thompson Creek Metals , a company that mines molybdenum -- a critical element used in the production of steel.
With steel names scurrying to keep up with the global growth story, the demand for moly has skyrocketed. And there’s only two pure ways to play it: TC or General Moly . The latter is up 280% this year on the strength of moly and it won’t even be producing it until 2010. TC, on the other hand, is making moly right now.
The company was traded on the Toronto Stock Exchange until last week but is now listed on the NYSE. Now that it’s available more easily for U.S. investors, Cramer thinks it’s poised to catch some of GMO’s gains and go much higher.
TC is only up 29% year-to-date – not bad, but nothing compared to GMO’s staggering 280% increase. It had some unexpected production delays that hurt the stock but everything seems to be worked out, Cramer said.
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