Opinions
Jim Cramer - Mad Money
New Fortress Energy
NFE-Q
BUY
May 31, 2023
Stock price when the opinion was issued
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A natural gas stock. A commodity that's been on fire since Russia invaded Ukraine, though nat gas prices collapsed due to a mild winter and lesser demand. Nat gas is volatile, but the price is bottoming now. NFE identifies developing countries where it can build infrastructure (on barges, even) to harvest nat gas and take that to market to sell for years. Such countries typically rely on coal, so NFE helps them transition to nat gas. They operate in Jamaica, Puerto Rico and Mexico with Ireland and other places ahead. NFE can convert nat gas on offshore rigs into liquified nat gas on the spot. Revenues have grown from under $200 million in 2019 to $2.27 billion in 2022. On track to top $3.9 billion this year and $5 billion in 2024. Shares are a bargain now as it trades at only 7x earnings
Has long-term growth potential, but shares have pulled back from $30 to $26 in recent weeks due to the larger energy pullback. Doesn't make sense. They just delivered a terrific quarter. Now is a fine entry point.