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Cramer's 'Mad Money' Recap: Cheniere's Dear Friend, CNBC & TheStreet.com

10/24/05

Jim Cramer issued a "triple buy" Monday on Cheniere Energy (LNG:Amex) calling it a "pure play on cronyism" after the energy company hired The Abraham Group, former U.S. Energy Secretary Spencer Abraham's consulting firm, to help navigate the permitting process for its new liquefied natural gas (LNG) facilities.

Cramer told viewers of his "Mad Money" TV show Cheniere has begun construction on two LNG receiving terminals on the Gulf Coast and plans to build two more there. After hurricanes Katrina and Rita, Cramer believed plans for all Cheniere's LNG terminals might be scrapped as the Gulf could have been perceived as too risky a place to locate them. However, it seems momentum has not waned, and the projects are moving forward, he said.

Cramer said Cheniere still needs Federal Energy Regulatory Commission approval before it can proceed with its third and fourth facilities, which is where Abraham comes in. He's betting with Abraham's help, the projects will go through.

If they don't, though, the stock will get hurt. Additionally, Cheniere has an energy trading business, which adds to the risk in the stock, he said.

Give it 18 months to "work the Spencer magic," said Cramer. This is a multiyear positive regulator story, said Cramer.