For the past few days, I have been taking profits in Goldman Sachs (GS) because the shares are up 9% in two days. I am going to take those profits and put more money to work in my two favorite wind plays, Quanta Services (PWR) and Trinity Industries (TRN) . After this Alert goes out to all of you, I am going to buy 2,000 shares of PWR and 300 shares of TRN.
I have been slowly building my position in Quanta over the past several weeks, because I believe the stock is a great wind play and will capitalize on its dominant market share in high-voltage wind projects in Texas. The company also will benefit from the transmission upgrade by the utility companies. I think management is conservatively estimating 15% to 20% growth for revenues and earnings and that there is upside to its more than $5 billion in its backlog. After my purchase, PWR will make up 3.24% of my fund.
I started building a position in Trinity last week. I think its railcar division has troughed, and there is real growth opportunity for its wind exposure. This company's wind division grew 40% last quarter, with very strong margins. As a result of my 300-share purchase, TRN will be 1.4% of the portfolio, and I will be looking to add on any weakness.
Regards,
Jim Cramer
DISCLOSURE: At the time of publication, Cramer was long GS, PWR and TRN.
Send email to james.cramer@thestreet.com.