Green Is Money
Last year for Mad Money’s first Green Week, Cramer chose eight environmentally friendly stocks for a green portfolio. The results are in: Green is working. The stocks – First Solar, Foster-Wheeler, MEMC, BorgWarner, Tetra Tech, FuelTech and OM Group – are up an average of 76.8% compared to negative 5.5% for the S&P 500. So on Monday’s show, he revisited each of his picks to determine which he thinks are worth hanging on to. First, the winners:
By far, the best performer. FSLR is up a monstrous 368% since Cramer first recommended it last April. It’s a solar play that hasn't required subsidies to work and one that Cramer thinks is best suited to continue its strong performance no matter who wins the presidency. FSLR is also the most cost-effective solar play because it does not use silicon, and that makes it cheaper for the company to produce its panels. Cramer remains in conviction mode for FSLR.
One of Cramer’s all around favorite infrastructure companies, FWLT is up 97% since he named it a green play on clean coal. If a democrat wins the White House, Cramer thinks clean coal, which is by far FWLT’s greatest environmental contribution, will become a focal point. But the company is diversified in petrochemical plants and refineries that are in short supply and should continue to work thanks to the high price of oil. Way off its high, Cramer reiterated that he thinks FWLT is a buy here.
Shaw is, first and foremost, a play on nuclear energy, which Cramer strongly believes is going to gain traction as more nuclear plants in the U.S. start to get off the ground. It is up 79% in the last year and he would stick with it.
This clean-emissions play has been a solid performer but Cramer recommended selling it now because it’s tied closely to auto production, which has been dismal.
Another winner, with a gain of 22%, but a stock Cramer would no longer own recommend to be owned. It worked over the last year because of high silicon pricing, but he doesn’t think that is sustainable. Silicon is the wrong technology for solar, he said, and it seems like the company has execution issues to boot.
Green has been working, at least if you look at the superior performance of Cramer’s original Green Week portfolio. But you can’t buy these stocks blindly. Click here to find out about the green plays that didn’t do as well.
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