NYSE: ASH Archive
Jim Cramer, You’re Right… Dow Chemical Will Shine in 2013
by Mike Kapsch, Investment U Research
Thursday, January 24, 2013
Jim Cramer has one of those personalities you love to hate.
He’s wildly entertaining. Yet he’s so manic that he talks faster than he can move his lips.
His show, however educational, is on television a lot… And he pumps too many stocks as a result. Despite having previously managed a hedge fund, Cramer seems to make a lot of bad calls.
It probably sounds harsh. But I’m not actually writing today to point out Cramer’s faults. Just the opposite, in fact.
You see, when it comes to stocks in 2013, regardless of any shortcomings, I believe Cramer will be spot on about one thing… Dow Chemical (NYSE: DOW) is going to have a great year.
Cramer says Dow is a “Buy” this year, because the company is taking advantage of cheap natural gas feedstock.
Simply put, natural gas isn’t just used for fuel. Companies like Dow also use it to make other products, such as plastics and fertilizers. Cheap gas prices today are making the production costs less expensive. And that’s leaving extra cash around for firms to reward shareholders.
Investment U readers may recall, I wrote about three industries that would thrive from cheap natural gas prices (plastics, methane and biofuels) back in January of last year.
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