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Cramer: Buy Wilbros

Thursday, 14 Feb 2008 | 7:41 PM ET

As goes oil, so go a few other key sectors in the market.

Where There's a Willbros
Mad Money host Jim Cramer gives you his take on Willbros.

That commodity’s resilience over the past two days is boosting natural gas and infrastructure especially, Cramer pointed out. He offered Homegamers a stock Thursday that’s in the sweet spot of both.

Wilbros is the number-two pipeline construction company in the U.S., and recently moved into refinery construction as well. Now, Wilbros is in the center of natural gas price increases, growth in U.S. refining capacity and global spending on onshore pipeline construction.

The company with a market cap of $1.25 billion says it has $12.4 billion worth of opportunities as over 6,000 more miles of pipeline are built by 2015. And firms like El Paso, Kinder Morgan and Spectra Energy are confirming they’ll put billions toward pipeline capital expenditure. Add to that the $7 billion to $8 billion projected to be spent annually on refinery maintenance through 2011, and Wilbros looks like a solid long-term play.

Wilbros trades at just below one time its growth rate – a classically cheap stock by Cramer’s definition. The company’s peers trade at 1.5. Even if WG bumped to 1.3 times growth, the stock would jump to $45.

That’s 31% higher than where WG is right now.

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