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Friday May 19th 2006
'Natural
High'
GGC
(GEORGIA GULF CP)
Have you
noticed that natural gas prices have fallen to a 15 month
low? Cramer
has, and instead of crying, he says, just figure out who
benefits.
The key is to see who uses lots of natural gas, but will not pass on he
savings to the consumer anytime soon.
GGC
(GEORGIA GULF CP)
should be a smart move. "As the price of its biggest expense
falls", he said,"the chlorine-maker
should save 62 cents a share annually for every $1 that natural gas
prices fall."
"Since it's pool season" he said, "the company should be able to keep
its
prices along with its other expenses steady. And since no one thought
that natural gas prices would fall like this, the stock is in serious
need of a revision."
Cramer
noted a "high quality problem" - It has a lot of cash on the books and
doesn't know where to put it.
"The company has two options for returning its excess cash" he said.
"The
first is to repurchase shares, and the other is through a leveraged
recapitalization, both of which should be great for the stock and could
equal money in your pocket."
