Natural-gas futures may fetch just about $3 right now, Cramer said during Thursday’s Stop Trading!, but that doesn’t matter much for the related stocks. Not with an expected change of heart in Washington that should make nat gas the fuel of choice among lawmakers.
Cramer has made similar statements lately, but his theory was confirmed during Wednesday’s Mad Money. Ultra Petroleum CEO Michael Watford told viewers that he expects federal and commercial fleets to move more and more toward natural gas, thanks to a government-subsidized transition.
“This would be amazing if it happened,” Cramer said.
Watford predicted the mass adoption of natural gas would push futures to $5-$6, Cramer said, and it’s the main reason that Clean Energy Fuels was up over 17% on Thursday.
Elsewhere in the market, Cramer used hedge-fund manager John Paulson’s buying of Citigroup stock as proof that the mortgage market was improving. Paulson is well known for shorting mortgages prior to the credit crisis, so his move into Citi, which carried a significant amount of bad loans, shows a shift in position. Citi was up about 9% with an hour left in trading.