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Cramer's Top Speculative Trade on Nat Gas

Natural gas is the ultimate transition fuel, Cramer said Friday, because it's clean, cheap and abundant.

It will take a push from Congress to use nat gas to fuel automobiles, however. Lawmakers are expected to address energy bill initiatives in the year ahead, Cramer said, including an act that would help boost incentives to produce 17,500 nat gas-powered vehicles a year. It is a $700 million market opportunity, he noted.

Admittedly, Cramer said that without such legislation, nat gas has been hard to speculate in. The best speculative trade is Westport Innovations , though. It produces the equipment that transforms petroleum-fueled engines into compressed nat gas and liquefied petroleum gas-powered engines. Westport benefits from a great management team, a partnership with engine maker Cummins and high-barriers to entry, making it difficult for potential competitors to break into the business.

Cramer has liked this stock since January 2010 when it was trading at $11.44. Since then, it's climbed 31 percent higher. To learn about future prospects for this nat gas name, Cramer spoke with CEO David Demers. Watch the video to see the complete interview.

When this story was published, Cramer's charitable trust owned Cummins.

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