Cramer’s Way of Playing Natural Gas The Speculative Way (WPRT, KMP, T, PGF, BHI, MRO, WFT, CVX, KMP, ED, T, PGF, UPL, APA, SWN, DVN)

According to Jim Cramer, playing in the natural gas sector is best done speculatively by investing in companies that produce engines running on natural gas or that develop technologies through which existing engines can use cleaner fuel. Westport Innovations (NASDAQ: WPRT) is one such play that currently has an opportunity to tap into the vast US and international markets. However, WPRT is heavily dependent on strategic partnerships and, thus, entails high risks. Cramer also believes that investors made the wrong choice when they selected bonds over stocks in 2009. Cramer prefers the stocks of Consolidated Edison (NYSE: ED), Kinder Morgan Energy Partners (NYSE: KMP), AT&T (NYSE: T) and Powershares Preferred Portfolio (NYSE: PGF) to get high returns while making safe investments. Cramer also expressed his concern regarding passive investing and advised investors to not sit back and see the market rise, especially when the S&P 500 is down 24% over the past decade. Cramer said that the recovery in the global economy would worsen the gas shortage and boost oil prices, which will be good for oil companies such as Baker Hughes (NYSE: BHI), Weatherford International (NYSE: WFT), Marathon Oil (NYSE: MRO) and Chevron (NYSE: CVX). Cramer also expressed his preference for Chesapeake Energy (NYSE: CHK), Devon Energy (NYSE: DVN), Southwestern (NYSE: SWN), Ultra Petroleum (NYSE: UPL), Apache (NYSE: APA), EQT (NYSE: EQT), Continental Resources (NYSE: CLR) and Range Resources (NYSE: RR). However, Cramer advised investors to avoid Linn Energy (NASDAQ: LINE), which has already risen by 70% since May 2009.