Cramer's always on the hunt for a bull market, and he thinks he may have found one in the industrial gas market. Monday, he spoke to the CEO of Airgas who gave reason to believe the industry is surging. On Tuesday's show, Cramer's guest was John McGlade of Air Products & Chemicals , who told Cramer that pricing power was back in the chemicals business.
Industrial chemicals and gases are in strong demand, driven by higher energy prices and the push for better environmental regulation, McGlade said. And it's not just a U.S. story. APD does business in 40 countries, with 55% of its sales coming from abroad. In this market, an industrial company that isn't purely domestic is one to watch, Cramer said.
McGlade noted that APD has seen success in passing along high energy costs to customers while also taking advantage of an increased demand for products like helium that are only found in certain places. With helium, for instance, the demand has skyrocketed because it is used in manufacturing flat-panel TVs, semiconductors and solar panels in addition to the traditional uses in the medical field and, of course, balloons.
With increased pricing power and a exposure to what appears to be a full-fledged bull market, Cramer recommended APD along with Airgas. And if the Fed cuts interest rates? These names could gain 25% in a heartbeat, he said.
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