Energy Metals Corp., a Canadian mining company, was recommended today by CNBC host Jim Cramer, who said worldwide demand for uranium will grow as more nuclear power plants are constructed.
Energy Metals could produce 5 million pounds of uranium by 2012, Cramer, a market commentator and former hedge-fund manager, said on his ``Mad Money'' television program. The price of uranium has increased to about $75 a pound from $8 to $10 a few years ago, he said.
Worldwide demand for uranium is increasing, though the U.S. isn't building new nuclear plants, he said. ``Everybody but us wants nuclear, and that means they need uranium,'' Cramer said.
Cramer said Energy Metals shares are ``not for the faint of heart'' and investors shouldn't pay more than $12 each. He said the company also is a potential takeover target.
Charter Communications Inc. (CHTR:US) was also recommended by Cramer. He said low interest rates should enable the St. Louis-based broadband service provider to refinance debt and spend more money on its business.
Cramer recommended buying or holding Anglo American Plc (AAL), Continental Airlines Inc., Arris Group Inc. (ARRS:US), Crocs Inc. (CROX:US), MRV Communications Inc. (MRVC:US) and Servotronics Inc. (SVT:US) in the show's ``Lightening Round'' segment.
In the show's ``Sell Block'' segment, Cramer recommended investors sell shares of International Business Machines Corp. The company's stock has dropped to $98.50 from $103 since Samuel Palmisano became chief executive officer in 2002, Cramer said.
``Your bank account is outperforming this stock,'' he said.
Cramer recommended investors buy Stericycle Inc., a medical waste company. Chief Executive Officer Mark Miller said in an interview with Cramer that the company is looking to make acquisitions.
Responding to questions from viewers, Cramer also said buy shares of Fronteer Development Group Inc., Yamana Gold Inc. (YRI) and MetLife Inc. (MET:US) He suggested not buying Exfo Electro-Optical Engineering Inc.
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