“The market threw maybe one of the sales of the century in one of my absolute favorite stocks,” Cramer told viewers on Wednesday.
Inergy , the fourth largest propane distributor in the US, dropped 2.6% during Wednesday trading because of the company’s secondary offering, a 10.3 million-share deal priced at $35.60. And that’s on top of the 18% drop from the stock’s Aug. 3 high.
Cramer called this secondary a “turning point,” though, because Inergy can use the money raised to pay down debt and finance important acquisitions, such as its purchase of Tres Palacios Gas Storage for $725 million. This deal is “huge,” Cramer said, because it makes Inergy the largest independent natural-gas storage provider in the US. That’s a good place to be in a world where there’s an abundance of nat gas in North America but no place to put it.
On top of Inergy’s growth, Cramer also likes the company’s dividend. As a master limited partnership, Inergy returns much of its profits to shareholders, and right now the dividend yields a monster 7.8%.
For a better look at this company, and its latest acquisition, Cramer invited CEO John Sherman onto Mad Money. Watch the video for the full interview.
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