'Slinging Mud'
ACO (AMCOL INTL CP)
"Today, we're trying to make
money in mud!
Yeah, mud. Mud can make
you some serious cash. The
mud stock that Cramer likes best
is AMCOL International (ACO)!
Why do I want mud? You
need to understand something.
When Cramer talks about mud,
he's using a very specific term.
Mud - or drilling mud - is
drilling fluid. Yes,
drilling fluid is something you
need to drill for oil,
especially when you're drilling
deep.
If you don't understand all this
oil drilling terminology, you
know what you ought to do?
Go on the web, and go to
Schlumberger's (SLB)
online oil field glossary.
This thing's the most useful
website known to man. It
is a veritable oil Funk &
Wagnall's.
The main ingredient in mud is a
type of clayled 'Bentonite.'
And that's what ACO mines and
sells.
Bentonite is thick. It's
used in water-based mud to
keep up the right level of
fluid pressure.
If you want that Bentonite -
as you can see, it's very
necessary for drilling - you
need to go to ACO! Man,
they are just a hammerlock on
this market.
But ACO doesn't just serve the
oil drillers. It's
Bentonite is used in many
industrial applications, such
as waste water filtration.
The bulk of ACO's growth
should come from the oil
patch; that's where I think
you want to focus on it.
The bottom line!: I think
it's time to go back to the well
- to the oil well - and buy some
ACO, to try to make money off of
mud."
