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Buy Covanta

This week Cramer put himself in the Sell Block. Call it punishment for missing a nice gain on Covanta, a waste-to-energy firm that jumped to $30 from $25 after he gave the stock the thumbs-down. But Thursday’s market offered Cramer a chance to redeem himself: Covanta dipped $1, or 3.3%, leaving investors a great chance to buy in.

Covanta’s the largest waste-to-energy plant operator in the U.S., controlling 50% of the market. The company converts 5% of America’s solid waste to energy every year, drawing praise from the Environmental Protection Agency, which said waste-to-energy has less eco-impact than almost any other electricity source.

Covanta’s footprint extends overseas, too, though. Aside of having other U.S. businesses, such as waste wood, methane gas and hydro power, Covanta operates coal plants in China and the Philippines, liquid fuel in India and natural gas in Bangladesh. There’s also a new joint venture in China to develop even more waste-to-energy plants. In fact, the Chinese government plans to boost the amount of waste used in waste-to-energy plants to 30% of all waste produced in China by 2030. Covanta should see a healthy chuck of that business.

Missing big gains is a sin, Cramer said, but highlighting Covanta on Thursday’s show is his penance.

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