Global Specialty Metals, a maker of silicon and silicon allows, is up 95 percent since Cramer recommended it as a speculation play on Dec. 4, 2009. After the quarter this company just had, he thinks it go still higher.
Cramer liked Global Specialty Metals because it’s a low-cost producer operating in very concentrated markets with high barriers to entry. In the West, 62 percent of merchant non-captive production is controlled by the top four silicon producers. And they’re partially protected from Chinese and Russian competition by anti-dumping duties.
Silicon is used to make chemicals, especially coatings, and it’s used by aluminum, solar and electronics companies as well. Right now it’s a strong business as evidenced by GSM’s better-than-expected quarter on strong revenues. The company even initiated a 15-cent dividend. But will the run continue? Cramer invited CEO Jeff Bradley to the show to find out. Watch the video for the interview.
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