We recently published a list of Jim Cramer’s Top 11 Trump Trades: Winners and Losers. Since New Fortress Energy Inc (NASDAQ:NFE) ranks 10th on the list, it deserves a deeper look.
Jim Cramer in a latest program talked about the consequences of the failed assassination attempt on Donald Trump and mentioned a few stocks that could benefit if the former President comes to power again.
“You are sticking your head in the sand if you think nothing has changed after the failed assassination attempt on the now-official Republican nominee for President.”
Cramer said that the “frightening moments” of the assassination attempt have indeed “cut in the favor” of Trump’s win and he was “already leading in the polls.”
Cramer recalled the days when he was the anchor of Kudlow & Cramer show and Biden was a senator from Delaware. Cramer said Biden once told him that he was the “poorest senator out of one hundred because he owned no stocks.”
“He was actually bragging about it,” Cramer said.
Cramer said that Joe Biden is not the “champion” of stocks and he’s “on board with labor.”
Jim Cramer’s Thoughts on Donald Trump
Here’s what Cramer said about Trump:
“In the many years I’ve known Trump and I have known him fairly well, he’s been wildely pro stock market, always watching it like a hawk. He loves bantering about the stock market.”
Cramer said that even though Trump was in “real estate, he enjoyed stocks.”
Jim Cramer added that Trump always thought there was too much regulation and was also “wildly” pro-oil and gas. The CNBC host said since Trump cannot see the stock market going down and sees the market gains as a positive factor even for his presidency, his arrival in the White House could boost stock portfolios.
“Hate him or like him, he’s good for your portfolio.”
For this article watched the latest programs of Cramer where he mentioned stocks that could benefit from a Trump presidency. With each stock, we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
New Fortress Energy Inc (NASDAQ:NFE)
Number of Hedge Fund Investors: 18
Jim Cramer thinks Donald Trump will “immediately suspend” President Biden’s ban on LNG exports, which has “crushed” New Fortress Energy Inc (NASDAQ:NFE), one of his “favorites.” Cramer also called New Fortness a “revolutionary company run by Wes Edens.” Cramer said New Fortress Energy Inc (NASDAQ:NFE) would be the “best” stock to own for energy exports.
The company operates a vertically integrated business model focused on natural gas and liquefied natural gas (LNG). It develops, finances, constructs, and operates natural gas infrastructure, including LNG terminals and power plants.
New Fortress Energy Inc (NASDAQ:NFE) shares have lost about 30% so far this year. The ban on LNG export isn’t the only problem haunting the company. New Fortress bears are pointing to the company’s debt and financing problems.
New Fortress Energy Inc (NASDAQ:NFE) faces significant upcoming debt maturities, with $872 million in September 2025 Secured Notes and $1.487 billion in September 2026 Secured Notes. The $750 million Revolving Credit Facility matures in 2026, contingent on refinancing the 2025 notes, and a failure to do so can make the Revolver maturity come early by 60 days prior to the 2025 notes. Similarly, the $772 million Term Loan B, maturing in October 2028, moves forward if the Secured Notes are not refinanced. This scenario puts nearly $4 billion of debt at risk of maturing within the next few years.
As of the end of last year the company had just $155 million in cash, which is significantly lower than what New Fortress Energy Inc (NASDAQ:NFE) reported in 2022. Its total debt is about $6.5 billion with total liabilities of about $8.7 billion. However, with plant sales and new financing, as well as a possible lift on LNG exports, the company may turn out to be a good opportunity for long-term investors.
New Fortress Energy Inc (NASDAQ:NFE) recently announced to sell its liquefaction and storage facility in Miami, Florida, to a U.S. middle-market infrastructure fund.
Overall, New Fortress Energy Inc (NASDAQ:NFE) ranks 10th on Insider Monkey’s list titled Jim Cramer’s Top 11 Trump Trades: Winners and Losers. While we acknowledge the potential of New Fortress Energy Inc (NASDAQ:NFE), our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NFE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
