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Jim's Quotes
from this
segment:
Jim:  With
the relentless
decline of natural
gas... less than
$2 per thousand
cubic feet here in
America, it can be
tough to remember
that, even though
we have more gas
than we can use,
in other
countries, this
stuff is in
incredibly high
demand. Natural
gas is much, much
more expensive in
the rest of the
world, where the
commodity is
actually wanted,
even though they
have much less of
it than we do.
Normally, when
something costs a
lot more in Europe
or China than it
does here in the
U.S., we just
export it, right?
But natural gas is
incredibly
difficult to
transport. Because
well, it's a gas
and, therefore,
takes up a lot of
space. If you
actually want to
move it around,
you need to turn
natural gas into
more compact
liquid form, by
freezing it using
huge,
technologically
complex liquefied
natural gas, or
LNG, terminals.
Enter
Chart Industries,
GTLS, for all you
homegamers. This
company is a
crucial part of
the LNG food
chain. They make
precision-engineered
cryogenic
equipment which
converts natural
gas into liquefied
natural gas. They
sell the storage
tanks needed to
transport LNG, and
the engine tanks
that hold LNG for
heavy duty trucks
that run on the
stuff. Now this
company also uses
its freezing
expertise to deal
with industrial
natural gases, and
they have a
terrific,
consistent
biomedical
business, where
they make liquid
oxygen therapy
systems too. Chart
gets about 60% of
its sales from
overseas, doing a
brisk business, as
numerous LNG
facilities are
built all over the
globe. Last year,
the company
tripled its
backlog to $632
million. That's
pretty incredible
for an engineering
and construction
company.
Now
the stock is up a
spectacular 88%,
since the last
time we spoke with
the CEO back in
February of last
year. I identified
this as a play on
natural gas. It's
about five points
off its high at
these levels. Does
it have even more
room to run? Let's
check in with Sam
Thomas, Chairman
and CEO of Chart
Industries, to
find out more
about his company,
and about how
other countries
use natural gas...
[Jim then
interviewed Chart's CEO, where
they discussed their
current outlook.]
Key
Quotes from the
Interview:
Jim:
You're
saying that it's
literally... a big
constraint is being
able to expand at
the speed that you
need to? And I
imagine also hiring,
right?
Thomas:
That's
exactly right. We've
gotten to the point
where, for our
welders, our skilled
engineers... we're
doing that training
ourselves.
Jim:
Really?
Thomas:
And
we have to bring
them along. The
people don't exist.
We're having an
energy boom in this
country, and so
qualified engineers
with experience
here, are all
employed.
▼ ▼
▼ ▼
▼
 Jim's
comments AFTER the
interview:
You
can see why I've
been behind
gas-to-liquids for a
very long time. Stay
with Chart.
Read Jim's next Segment
here
|
Note: Pertaining to these stock recommendations & any other, Jim Cramer recommends that we do
our homework
before investing.
We've provided a free workbook at this StockHomework101 site for this,
here >> |
[end of segment]
*Note:
An asterisk next to
a stock indicates
that Jim owns it
currently for
his charitable trust.
If you are
interested in a
particular stock,
Jim Cramer
recommends that you
always do
the homework
on each stock, and
that you wait at
least one trading
week after his show
recommendation to
evaluate whether it
is a good stock
trade or investment
for you.
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