Cramer Takes His Gas To El Paso & Nabors (EP, NBR)

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In light of EARTH DAY, Jim Cramer came on MAD MONEY on CNBC with a natural gas pick tonight.  His pick tonight is El Paso Corp. (NYSE: EP) which is the largest domestic natural gas pipeline with some 42,000 miles of pipeline.  At under $18.00 per share, Cramer noted that this is a catch-up play.  It was only up 3% this year and he thinks the stock should be worth $22.00.  He also likes its expansion as the cheapest natural gas play out there and with recent insider buying in the stock.

Shares of El Paso closed up marginally today at $17.78, and shares traded up almost 3% to $18.28 after the Cramer tout.  Its 52-week trading range is $14.80 to $18.56.

Cramer also came on and touted Nabors Industries Ltd. (NYSE: NBR) tonight as one of the largest land driller for natural gas.  In fact, he even brought on the CEO, Gene Isenberg for a brief interview.  They were talking about how oil was so high compared to natural gas for so long.  As far as a developing rig shortage, Isenberg says any of the idle rigs will be used in the U.S. or internationally.  The company also talked about its shales that are available in the U.S. and Canada.  As far as higher potential taxes, he said that producers will have to be realistic and they will have to drill if it is economical.  NBR closed at $37.90, right at the top of its prior $23.61 to $38.00 52-week trading range (but intraday high today was $38.61).

Jon C. Ogg
April 22, 2008

Jon Ogg is a producer of and editor for both the Special Situations newsletter and the "10 Stocks Under $10" weekly newsletter for 247WallSt.com; he can be reached at jonogg@247wallst.com and he does not own securities in the companies he covers.