Cramer’s Green Energy Play – Fuel Systems Solutions
“A natural-gas subsidy bill is working its way through Congress that could jump-start the commodity’s use here in the U.S.,” Jim Cramer said on Thursday’s “Mad Money” TV show. One green energy stock that could be a big winner off the passing of the bill is Fuel Systems Solutions (FSYS). Cramer last recommended the stock in August of 2008 at $36.50 a share, but the stock fell $10 a share before recovering back into the $30′s. Cramer explained that he thought Obama would get behind natural gas, but that didn’t materialize. However, now a new natural gas bill is working its way through Congress, and if passed, the act would extend the tax incentives for those who installed nat-gas refueling pumps by 18 years, double the tax credit for liquefied nat-gas trucks, create a tax credit for companies that produce nat-gas vehicles and require half the vehicles that the federal government produces to run on the fuel. Cramer said this would be huge for Fuel Systems, which makes the parts needed to make this happen. He also mentioned that if Congress doesn’t pass the bill, FSYS has a strong European customer base to pick up the slack. New standards in Europe are trending in the right direction for more conversions to nat gas. Cramer said the stock is cheap trading at just 15 times 2010 earnings despite a 22% long-term growth rate. He called the stock a strong, but speculative buy. Get the scoop on tomorrow’s hottest trade ideas – TODAY! BeaconEquity.com PREMIER PICKS have an amazing track record. Join this select group and ride the profit wave!
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