Sell Block: Coal's Not King Anymore

The energy bill that passed Thursday in Congress is the death knell for coal, Cramer said during Thursday's Mad Money.

The bill includes a requirement for coal sequestration that should dramatically increase the total cost of burning coal for energy. But with "green" that latest trend, Democrats specifically targeting the fuel, and Google too for that matter, it seems like coal's time is over.

So that means selling Peabody Energy. Not that investors can complain if they followed Cramer's suggestion. BTU is up 14% since he recommended it June 18 and 53% since his call back in October 2005. And what better time to sell than when the stock is at a 52-week high.

All coal has to go, including everything from Arch to International Coal and Massey Energy. The bright side in all this is that natural gas should fill the gap. It's clean and cheap, and 2008 should be a big year. So roll those profits from BTU into XTO Energy, Apache, Anadarko Petroleum or ConocoPhillips, Cramer said.

Jim's charitable trust owns ConocoPhillips and XTO Energy.

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

Contact Mad Money

  • Showtimes

    Monday - Friday 6p ET
    Saturday 8a, 1p, 7p SYD
    Sunday 12a, 1a, 8a, 7p SYD
    New Zealand
    Saturday 10a, 3p, 9p NZ
    Sunday 2a, 3a, 10a, 9p NZ
  • Jim Cramer

    Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

Mad Money Features

  • Grab the latest CNBC gear from the NBCUniversal Store!

  • Get a behind-the-scenes look at how Cramer formulates his investment advice. "Inside the Madness" is a column, which features e-mails and more with Cramer and his researcher Nicole Urken.

  • You’ve always wanted to hit the “Hallelujah!” button. Here’s your chance.

Mad Money Moments

Cramer's New Book