Cramer Calls Fuel Systems (FSYS) a Play on Obama Being 'More Friendly to Nat Gas'
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Price: $5.40 --0%
Rating Summary:
3 Buy, 5 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 25
Rating Summary:
3 Buy, 5 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 25
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On Mad Money last night, Cramer recommended Fuel Systems Solutions (Nasdaq: FSYS) as a play on Obama being "more friendly to natural gas than he appears." Cramer admitted that shares of Fuel Systems are down nearly 40% since the last time he touted the stock, but believes "this time is different".
Even though nat gas initiatives have largely been halted in the US, Cramer remains a believe in Fuel Systems' stock as countries in the European Union are still mandated to turn out 20% of new vehicles powered on nat gas by 2010. Cramer also likes that Fuel Systems receives about 77% of its sales from overseas markets.
From a valuation standpoint, Cramer says Fuel Systems looks attractive as it is currently trading at just 11.3x forward earnings, but the company is growing long-term earnings at almost twice that multiple.
Cramer warned that investors should not chase the stock however, implying that a pull back is probably needed before backing up the proverbial truck.
Shares of Fuel Systems may be seeing a slight "Cramer bounce" this morning; the stock is currently up 3.8% to $24.19.
Even though nat gas initiatives have largely been halted in the US, Cramer remains a believe in Fuel Systems' stock as countries in the European Union are still mandated to turn out 20% of new vehicles powered on nat gas by 2010. Cramer also likes that Fuel Systems receives about 77% of its sales from overseas markets.
From a valuation standpoint, Cramer says Fuel Systems looks attractive as it is currently trading at just 11.3x forward earnings, but the company is growing long-term earnings at almost twice that multiple.
Cramer warned that investors should not chase the stock however, implying that a pull back is probably needed before backing up the proverbial truck.
Shares of Fuel Systems may be seeing a slight "Cramer bounce" this morning; the stock is currently up 3.8% to $24.19.
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