Cramer's Mad Money Windex, the basket of wind-power stocks he named back on May 28, has taken a beating of late. But then again, what sector hasn't? The difference here, though, is that there's a catalyst coming up for the Windex that could change things for the better.
On Thursday, the Texas Public Utility Commission will discuss docket # 33672, an initiative to build out wind-power infrastructure to lure to the state more companies that deal in the renewable energy source.
It's a key move because a lack of connection to the main power grid is one of the biggest business impediments for wind-power companies, since wind farms tend to operate in remote areas. Texas could both give wind power the push it needs and set a precedent for other states to follow. Cramer expects the industry's stocks to move higher on the news.
And Cramer's Windex stocks need all the help they can get. This has been an incredibly tough market for them. Trinity , Thomas & Betts , Owens-Corning , Clipper Windpower (CRPWF.PK), Kaydon , Broadwind Energy (BWEN.OB), Woodward Governor and MasTec are all down -- some as much as 20%. Only Vestas of Denmark and Otter Tail are up, 3% and 15%, respectively.
Cramer blames the losses on the fact that there are very few pure wind plays. In fact, a lot of these companies are exposed to the industrial activity that's taken some of the biggest hits lately. But the bright spot here is that the true pure plays -- Vestas and Otter Tail -- are up, and that speaks volumes about the stength of wind power.
It's that strength that keeps Cramer confident in the Mad Money Windex. These may be broken stocks, but they're definitely not broken companies. So he recommended buying more wind power on this pullback.
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