Fundamentals, Not Charts, Decide Clean Energy’s Fate
For Monday’s Mad Mail, Anna wrote in to say that Southern California Edison was replacing its old electrical meters with Itron smart meters in a number of cities there. Did that make ITRI a buy? Cramer said no. Apparently for the company there’s newfound competition that is cutting prices, so he can no longer recommend it.
Patrick at the University of Wisconsin at Madison asked about Clean Energy Fuels , saying the charts seem to be saying it’s time to buy the stock. Did Cramer agree? The "Mad Money" host, of course, prefers fundamentals to technicals, and he said that his endorsement of CLNE depends on whether we see pro-natural gas legislation from Washington. If trucking companies get a tax credit or rebate for switching to nat-gas-fueled trucks, then Clean Energy is “going to go way, way through its old high.” Otherwise, Cramer said, “the stock’s going to trade lower.”
Sam wanted to know why Baker Hughes wasn’t doing as well as he thought it should. Cramer urged him to review the company’s most recent conference call, which showed “how poorly the company is doing.” He suggested that investors consider Weatherford International instead.
When this story published, Cramer’s charitable trust owned Weatherford International.
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