UNP
(UNION PACIFIC)
'Train
Reaction'
"Some commodities, they've got what I like to call 'pander
power.' That's when something has so much political
appeal
in this country, just so many different constituencies, that
politicians will just keep plugging it. No matter how
economically unsound the idea may be.
Ethanol? Ethanol is the king of pander power. The
environmentalists - they hate fossil fuels. They like the
ethanol
on the left, okay?
The Republicans - they all come from states that produce massive
amounts of corn and wheat. They've got to love ethanol too.
The only people who might not like it - the oil men.
Because ethanol has so much pander power, I need to find more great
ways to make moolah off it.
I need to find ethanol pin action! I think I have something.
Let's ask ourselves a question... how do you get ethanol from the
plants that process it, to the gas stations where it's needed?
How about an ethanol pipeline? No dice! It corrupts
the pipeline. Yeah, it corrodes all pipelines.
But we still need to get ethanol, to the Midwest, where it's produced,
to California, where we've got the most driving, and therefore the most
demand.
I think the best way to move your ethanol across the country - the
stock that you ought to take down - is Union Pacific (UNP)!
Now, you've got one more reason to own this excellent railroad stock.
Hey, UNP? Not just levered to ethanol. They also
ship a lot
of coal. Have you ever seen a coal stock not be on the
52-week
high?
Coal may not get all the hype that ethanol has but, as an energy
source, it has a lot more credibility. That's why Cramer
thinks
the rails are the new energy plays.
I would be remiss if I didn't tell you that BNI does all this
too. Notice I didn't push the bull button just yet - uh, they
don't do it well. BNI - maybe 'don't buy, don't buy.'
But look, you want to move coal around? You want to move the ethanol
out to California? You can still use BNI. The stock
is down
10 points from its high, so you'd certainly be getting a discount.
But I prefer UNP, down 5 from its high, because it's best of breed.
The bottom
line!: Cramer thinks you should go with best of breed and buy
UNP!"
FROM
MONDAY NIGHT'S (5/1/2006) SHOW:
Lightning Round
Old
Train Reaction
King Corn
Viewer Call-in
(non-lightning round segment)
