Cramer will often get behind a stock relentlessly because he sees long-term value in the company. One of those companies is Dynegy , which has been experiencing a pullback over the last few weeks. Cramer likes to check his work, so he’s going right to the source with Dynegy CEO Bruce Williamson on set.
The main reason the stock has retreated is because a subsidiary of Chevron sold 97 million shares in May. Is that a signal that Dynegy is fundamentally headed in the wrong direction, or is it just a move that sparked panic with investors?
Chevron originally got into Dynegy as a play on natural gas, Williamson says, but Dynegy has since sold that business – so Chevron in turn sold its shares for strategic reasons. Chevron pulling out of the company doesn’t affect its earnings per share or the underlying economic performance, he says.