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As always, I have to remind you that the U.S. Natural Gas Fund(UNG) is not the way to play this turn, because it simply isn't a true tracker of the fuel due to issues long chronicled here in my columns as well as by Dan Dicker in other RealMoney pieces.
I don't expect immediate tightness in the fuel. There's too much of it, and that's not going to change anytime soon. But I think that a statement about how we have seen the lows makes a ton of sense -- and as my colleague Matt Horween has indicated here many times, this common-sense fuel is just too attractive to continue to plummet in price with oil trading out of control to the upside.
Action Alerts PLUS, which Cramer co-manages as a charitable trust, has no positions in the stocks mentioned.
The Switch to Nat Gas Is in the Air
Posted at 1:18 p.m. EDT on Thursday, March 15.
Slow and steady will win the aftermarket race. I am talking about two deals that came today, two very different IPOs. One made you a lot of money if you got in, and one could make you a lot of money if you didn't.
This morning Demandware(DWRE) , cloud play on Internet commerce, and Allison Transmission Holding(ALSN) came public. I had told you to do your best to get into Demandware because the space is hot and this could be the next Salesforce.com(CRM) of Internet commerce. The price talk was $12 to $14 and I said that it seemed reasonable, even though it is losing money, to pay up to $16 because then it would be at 5 to 7 times sales, which is as the high end of the range of similar IPOs in the space.
Today it was priced at $16 and opened at $25, more than 10 times sales, an absurd level, immediately the most expensive stock in the sector.