Hi Jim: Thanks for helping us small investors develop rigorous and sound methods of securing our financial futures. My question pertains to natural gas plays in a diversified portfolio. I have Kinder Morgan Partners in my portfolio for its dividend and relative lack of volatility in an uncertain market. I am also interested in Range Resources as a play on natural gas as a bridge fuel, and its exposure to the Marcellus Shale region. I see RRC more as a growth play in natural gas E&P, while KMP is more utility like. Is there a place for both in a diversified portfolio? –Ron
Cramer says: “Yes, because owning KMP is like owning Con Ed . It is a utility … it’s actually even better than owning Con Ed. It has less economic exposure. And Range Resources, by the way, discovered the Marcellus Shale in 2004. We had the CEO on recently. He is rocking.”
Greeting Jim!: A West Philly booyah! I just recently got in the game and want to thank you for the stock market education. My question is in regards to Fannie Mae and Freddie Mac. Are they long-term holds as the housing market makes the upward curve? –Erik
Cramer says: “I think that those companies, their stocks, are worthless. They keep trading. That doesn’t mean anything. GM traded right down to the day it was canceled.”
Jim: I watch the show everyday and I am a believer in your natural gas thesis. However, I wonder why you never mention EnCana for a pure natural gas play. After the recent spinoff of Cenovus Energy, ECA is now a pure nat. gas play with strong fundamentals and good growth prospects in both the US and Canadian Shales. Unlike other players, it currently offers a nice 2.34% yield and trades at a low price-to-earnings ratio of just over 11. Why is it overlooked? –Jon
Cramer says: “You’re right. It’s overlooked, and we’re done with that … I’m going to get to the bottom of why this is not valued correctly. You can expect it next week.”
Warren Buffett and Cramer seem to agree on one important point. Watch the video to find out what it is.
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