Stop Trading!: Coal Is Heating Up

As the world’s appetite for coal grows, the best way to play it is with the railroads, Cramer said on Friday’s Stop Trading!.

For coal companies to ship their product to Europe and China, it first needs to get it to the ports. And the only way to do that is via railroad. That’s why Cramer recommended CSX and Norfolk Southern as buys on increased global demand for coal.

As for the actual manufacturers of the commodity, Cramer said Peabody Energy remains his favorite. But coal still pales in comparison to natural gas, which is still the “only real viable” alternative energy source, as far as Cramer is concerned.

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