Don’t ever say that Cramer doesn’t revisit the stocks he recommends or the strategies he says are working. He’s been touting the success of natural gas for some time now, and in the past few weeks all he can talk about is wind power. If 2008 is the year for natural gas, he’s said, then 2009 will be wind’s chance to blow.
Cramer’s talked up Owens Corning, Trinity and Woodward Governor, just to name a few, and now he’s cheerleading for MasTec . Think of it, at least partly, as a service company for the wind-power sector. Just as oil drillers need companies like Halliburton and Schlumberger to help get their product to market, wind farmers need MasTec.
Last quarter, wind made up 17% of sales for MasTec, and management predicted the second half of this year will be even better. Cramer thinks sales could as much as double in that time, and the year after, double again.
MasTec isn’t just a wind-services company, though. In fact, it’s largely known as an infrastructure provider for telco and energy firms. So as natural-gas plays like Anadarko , XTO Energy , Apache and Chesapeake grow at a healthy clip, so does MasTec.
Then there’s the whole telco/satellite versus cable trend. DirecTV , Verizon Communications and AT&T are working hard to take share from the Time Warner’s of the world, and MasTec, heavily involved with both DTV and VZ, is the arms dealer in this media war. As these companies ramp up the offensive, MasTec benefits.
With DirecTV struggling right now, MasTec’s exposure to the company is no doubt hurting MTZ stock, which trades at a discount to its peers. But Cramer seems pretty confident that MasTec’s wind business will eventually overtake this weakness. And the $1.4 billion backlog means MasTec isn’t going out of business any time soon.
Cramer’s suggestion: Take advantage of MasTec’s cheap price now before that wind business takes off. While Wall Street may only see this company for what it is, he’s urging investors to see MasTec for what it will be.
Jim's charitable trust owns Verizon Communications and XTO Energy.
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