When it comes to the losers in last year’s green portfolio, it might be best to apply that term loosely. After all, each of Cramer’s eight stocks beat the S&P. Still, three of them dramatically underperformed the rest of the group:
Although this stock is the biggest loser of the group (it’s only up 1.6%), Cramer would be a buyer. The company is a play on the water cycle and it stands to benefit from a global water shortage that Cramer thinks is coming, even though all the talk is about oil. TTEK does a ton of business with the federal government in the form of coastal engineering, raw sewage and flood protection contracts. Plus, TTEK just bought a wind energy company, levering it to another $20 billion green energy opportunity. Last year TTEK was wrong, but this year it looks like it could be right, Cramer said.
Another so-called loser, FTEK is up just 9% over the last year. As a play on clean coal, FTEK is going to be in the sweet spot if a democrat wins in November, Cramer said. There’s a legislative catalyst too, as clean air regulations are set to commence next year that will force utilities to seek out pollution control technologies, which is FTEK’s bread and butter. The company is also gaining exposure in Asia and has seen a flurry of healthy insider buying. The stock had a huge run right after Cramer recommended it last April and then dropped sharply. But it is one of those stocks that swing wildly up and down, and Cramer thinks the next direction is up. Time to reload, he said.
This emissions play is up a relatively paltry 11% in the last year. The stock was down as much as 26% but then recovered and Cramer said anyone who owns OMG should count their blessings and take profits now. The company makes the chemicals used in hybrid-car batteries and is heavily dependent on the price of cobalt. The combination of a terrible auto industry and weak cobalt prices makes this stock a “don’t buy” to Cramer.
You already know Cramer’s green winners. Now you’ve got the losers, although even the worst of the bunch have performed better than the overall market and only OMG is a sell.
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