Nancy Pelosi Approves This Stock
When Warren Buffett owns a stock, there’s a good chance you want to own whatever it is he’s blessed as well. But Cramer dropped a name today of someone who might even be even more influential: Nancy Pelosi.
Turns out the speaker of the House of Representatives owns between $100,000 and $250,000 worth of stock in Clean Energy Fuels , a company that builds and runs natural-gas fueling stations for vehicles that run on compressed or liquefied nat gas, The Wall Street Journal reported last week.
T. Boone Pickens may be the largest shareholder of CLNE, but there’s probably nothing better than having the full confidence of Nancy Pelosi behind your company.
“It’s even better than Warren Buffett being a shareholder,” Cramer said, because Buffett doesn’t control the House of Representatives.”
Pelosi’s stamp of approval is huge because, without government incentives, gas stations that pump only nat gas are likely to go unused. So her investment in CLNE is “the clearest possible endorsement of natural gas as a transportation fuel,” Cramer said.
There’s a November ballot initiative in California, Pelosi’s home state, to authorize $5 billion worth of bonds to fund the replacement of 70,000 trucks and 150,000 cars with vehicles that run on nat gas and other clean fuels. If the initiative passes, that’s definitely good news for Clean Energy. With Pelosi’s support, there’s a good chance it will.
Just the 300 trucks at the ports of Los Angeles and Long Beach have boosted CLNE, so those initiative numbers are going to have a huge impact on the stock.
There are other reasons to like Clean Energy. The company recently reported a better-than-expected quarter, losing just 5 cents a share rather than 11 cents, and it has proved it can deliver where other companies can’t. CLNE just got most of the business in Phoenix it had lost when a rival couldn’t live up to its contract.
So Cramer’s siding with Madam Speaker, and he thinks you should, too. But this is a small stock, so remember the rules: Don’t pay up, buy in small increments, use limits orders, and wait five days before you buy.
Questions for Cramer? email@example.com
Questions, comments, suggestions for the Mad Money website? firstname.lastname@example.org