GO
Loading...

Stop Trading!: Texas-Sized Power Build-Out

The Texas Public Utilities Commission meeting Cramer was talking about earlier in the week happened Thursday. There are $4 billion worth of contracts coming, he said during Thursday’s Stop Trading!, as the state builds out its wind-power infrastructure to lure in alternative-energy businesses.

Quanta Services should get the "lion’s share" of those contracts.

But "everything wind is going to get a multiday move," Cramer said, "even with oil going down."

While oil has dropped about $5 today, these wind plays work as long as the price per barrel stays above $100.

Cramer recommended another stock with wind-power exposure, Owens Corning. OC makes the composites for wind-mill blades, so the company should also get a lot of business out of the new Texas initiative.

OC is up about 12% today on rumors of a takeover by PPG Industries, but Cramer said he doesn’t think the deal will happen. So he’s "poo-pooing the rally," he said, "even though I like the stock long term."

Yum! Brands took a hit today after reporting that high raw costs are hurting the business. There’s a chance Yum! could rebound if the next U.S. president got rid of the ethanol mandate at the center of this food inflation, but "the next three months are going to be difficult," Cramer said. He urged investors to keep this inflation in mind if they’re considering buying any restaurant stocks.

As to whether this week’s rally means the hurricane is over, or it’s merely the eye of the storm, Cramer pointed to the Securities and Exchange Commission’s focus on the shorting of Fannie Mae and Freddie Mac. As long as an issuing of equity by the banks follows the move, he said, then "we’ll be fine."

"Everybody needs to do a financing," Cramer said of the banks. "If they do financings, we can live to play again. If not, oil goes back up, and banks go back down."






Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

Contact Mad Money

  • Showtimes

    U.S.
    Monday - Friday 6p ET
    Australia
    Saturday 8a, 1p, 7p SYD
    Sunday 12a, 1a, 8a, 7p SYD
    New Zealand
    Saturday 10a, 3p, 9p NZ
    Sunday 2a, 3a, 10a, 9p NZ
  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

Mad Money Features

  • Grab the latest CNBC gear from the NBCUniversal Store!

  • Get a behind-the-scenes look at how Cramer formulates his investment advice. "Inside the Madness" is a column, which features e-mails and more with Cramer and his researcher Nicole Urken.

  • You’ve always wanted to hit the “Hallelujah!” button. Here’s your chance.

Mad Money Moments

Cramer's New Book