Gas Investments

Heard Bill Powers on FSN interview, and he made a strong case for natural gas. Then read his article that used analysis from Stephen Brown and Mine Yucel, two researchers at the Federal Reserve Bank of Dallas.

Their analysis, in sum, states that gas prices have maintained a 10 to 1 historical average. And should trade at a 6 to 1 average given that oil has 6x as much energy.

Some gas plays include, United States Natural Gas Fund (UNG trading at $11)

Hydraulic fracturing services are in huge demand.
GMX Resources (NYSE:GMXR)
Comstock Resources (NYSE:CRK)
Halliburton (NYSE:HAL)
Weatherford International (NYSE:WFT)

A word of caution from Kramer:

Down on Natural Gas
In the Thursday "Sell Block" segment, Cramer did an official about-face on the natural gas stocks, which he has championed as a bridge fuel towards an energy independent future.

With nuclear power on the sidelines after the Japanese earthquake, many investors feel that natural gas is the logical choice to fill the gap. But Cramer noted that while coal is priced internationally, natural gas is priced locally, and without liquified natural gas (LNG) terminals to export the stuff, our natural gas is stuck right here at home.

Cramer said he's still bullish on Southwestern Energy (SWN), a stock which he owns for his charitable trust, Action Alerts PLUS, and Chesapeake Energy (CHK), which is transitioning away from gas and into oil, but all others are sadly only investable as a takeover.

Cramer said he'd be more bullish if the natural gas subsidy for trucks ever passes Congress, but that seems unlikely in lieu of new EPA regulations for coal which does not force polluting plant to shut down.

Cramer also reminded viewers that the U.S. Natural Gas Fund (UNG) is not investable under any circumstance, as the fund does not own gas itself, but rather futures contracts that don't work as investors think they do.

Also on the sell block was Chart Industries (GTLS), a stock that's up 28% in six weeks since Cramer recommended it. Cramer called Chart a "known story" and said the time to sell is now.

Perhaps the only silver lining in the natural gas story was KBR (KBR), which is building LNG terminals for import and export. But Cramer said even this company wouldn't see any big gains from natural gas for a long time.