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Cramer's Best NatGas Play

Monday, 21 Jun 2010 | 4:00 PM ET

Worldwide demand will turn the US into a "very big exporter" of natural gas, Cramer said on Monday's Stop Trading!, especially as Washington remains uninterested in natgas as an alternative energy source.

Stop Trading, Listen to Cramer!
Mad Money's Jim Cramer shares his nat gas plays.

A growing number of countries, including China, are "desperate" for natgas. It has become a commodity people want more of, especially in the aftermath of the BP oil spill off the coast of Lousisana. The future in exportation of natural gas appears strong, Cramer said, especially since President Barack Obama and Democrats are not interested in talking about it.

"It's going to be reflective of worldwide demand, not domstestic demand," he said. "We have to create a world where we export."

The Mad Money host likes natgas as a long-term investment. He thinks there are two options to play natgas. One is UNG , an etf for natural gas, but he prefers going with Oklahoma City, Okla.-based Chesapeake Energy .

Elsewhere in the market, American Tower is a stock Cramer has liked and the Boston-based company hit its one-year high Monday. AMT provides infrastructure for wireless communications companies — think cell phone towers. Cramer likes AMT because he thinks there will be continued demand for additional towers. He said people might be afraid of the company's high multiple, but said it's the cash flow that counts.

Turning to the banking industry, where Cramer continued to support Banco Santander . He said in the last month, STD has done more to "change its complexion" and lose exposure to Spain than any other company.

Primerica is a stock that nobody's talking about, but Cramer likes it. The financial name sells discount to book, is very profitable and sells at 10X earnings with 10% growth rate.

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AMT
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CHK
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SAN
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UNG
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