Shaw CEO on the Future of Nuclear Energy
When Cramer took his show to the campus of Tulane University on Tuesday, he told students they had a certain edge over the pros on Wall Street. That is, they're not on Wall Street.
It's a local edge, he said. When investing in companies near where you live, you might get to know someone who works there, see if they're putting up new buildings or turning off the lights at existing ones. That kind of local knowledge doesn't replace doing your homework on a company, but Cramer thinks it's a "fantastic" source of additional information.
While in the Bayou State, Cramer wanted to check up on a local company. Based in Baton Rouge, La., the Shaw Group is a major nuclear power company and one of Cramer's favorite engineering and construction infrastructure stocks. Shaw also has an environmental clean-up business, which built the sand berms to protect the Gulf Coast from the BP oil spill.
Cramer thinks Shaw is the single most important company for the restoration of New Orleans, post-Hurricane Katrina. But he's worried about the prospects for nuclear power in the US and how that will affect Shaw's nuclear ambitions. Four of the 17 applications for new nuclear power-plant operating licenses filed in the US have been suspended. And while Progress Energy and Duke Energy plan to have their reactors built by Shaw, both companies have scaled back and postponed their nuclear plans.
Despite the $19 a share in cash the company has on its balance sheet—and this is just a $32 stock—shares of Shaw traded lower Tuesday. Cramer thinks it could be a great buying opportunity, but to be sure, he spoke with CEO Jim Bernhard at Tulane. Watch the video to see the full interview.
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