On last nights 5th year anniversary show, Bill from Massachusetts asked Cramer about NSTAR. So, on Wednesday after doing homework on the stock, he is ready to make his call.
NST is the largest utility in Massachusetts. The stock has a 5 percent dividend yield and the company is operating under a seven year rate agreement extending through 2012. Analysts predict 5 percent Earnings-per-share growth and corresponding 6-7 percent dividend growth.
Cramer thinks the company has a solid track record. And since NST has no power generation and passes supply costs directly to customers, there is no concern over future environmental mandates and carbon legislation.
Jim: Sending a big Nantucket foghorn Booyah-to-ya. I bought Clean Energy Fuels and Westport Innovations on your recommendation. I am now up 27% on CLNE and 31% on WPRT… Given the present market, do you still think I should stay long or ring the register -Norm in Nantucket, Mass.
Cramer says: “…you have to take some profits. The CLNE conference call was very good, the numbers were much better-than-expected. You still want that natural gas act to pass. Remember Boone Pickens thinks it’s going to pass before Memorial Day. I don’t think that’s going to happen because healthcare is going to pass but that’s taken a while and has backlogged everything. ”
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