Cramer said glass and composite makers also benefit. Owens Corning (OC) gets a 24-cent-a-share boost to its earnings from a $1 drop in natural gas, while Owens Illinois (OI), no relation, get a 10-cent boost.

At that price, there is so much good that can happen in expanding margins of the many companies that use natural gas, mostly chemical companies such as Dow Chemical (DOW) and PPG Industries (PPG) but also any company involved in acquiring plastic or its derivatives, certainly glass makers such as Owens-Illinois (OI), which has skyrocketed, and, of course, utilities.

. The glass maker's forecast was increased by Citigroup sending shares higher

"There are tons of real beats out there. I didn't expect Owens-Illinois (OI) to do that well, for certain. ... Dow Chemical (DOW) obviously had a lot of fat. ... Everyone's saying now that April's been pretty darned good. ... Taiwan Semi's (TSM) a monster, and a great play on China." ("Flu Panic Led Shorts to Lean too Far," 4-30-09)

Cramer examined two local green companies, Owens Corning (OC), which makes insulation and materials for windmill blades, and Owens-Illinois (OI), a large glass recycler. ... Cramer noted that neither of these companies has the two things Wall Street needs to send their stocks higher: growth or a dividend. Both companies are doing poorly, and won't be able to show any growth for the foreseeable future, said Cramer. ("Mad Money Recap," 4-22-09)

Valuations are attractive throughout the industry, which now sells for just 11 times the past 12 months' earnings, according to Wachovia. That's cheaper than consumer-staples stocks, which sport a trailing price/earnings multiple of 16.4, and the S&P 500, with a P/E of 15.9. One of the least expensive packaging stocks is glass-maker Owens-Illinois (OI), which, at around 18, fetches 5 times this year's expected earnings of $3.73 a share and 4.6 times next year's projected profits of $3.97.

The leading producer of glass containers announced that it will buyback up to $350 million in common stock. The repurchases will take place from time to time
pending on market conditions and will expire December 31, 2010.

"We believe that the Company has substantial prospects for continued earnings growth and the current share price does not reflect the long term value of the firm," said Al Stroucken, Chairman and CEO. "As we evaluate investment alternatives, the repurchase of our stock represents another attractive opportunity to deliver value for our shareholders."

Higher prices and lower interest expenses helped fuel stellar second-quarter results for O-I. The Perrysburg, Ohio-based company experienced net income of $231.3 million, or $1.35 a share, up from $149.7 million, or 89 cents a share in the same period last year.
Total sales jumped from $2 billion to $2.2 billion this quarter. Although the company admitted to selling fewer bottles, the surge in profit came from the sale of higher end bottles and the weakness of the U.S. dollar against currencies where O-I has operations.

Another bullish note is that analysts from Wachovia Equity Research have an outperform rating on the stock. The analysts mentioned “Additionally, while the company has lacked discipline in the past as it relates to free cash flow allocation, we note that a new
management team, on top of recent portfolio re-jiggering has positioned the company on a solid footing over the next few years.” They believe the stock should be trading in the $48 to $52 range.

form 4

The leading producer of glass containers announced that it will buyback up to $350 million in common stock. The repurchases will take place from time to time
pending on market conditions and will expire December 31, 2010.

"We believe that the Company has substantial prospects for continued earnings growth and the current share price does not reflect the long term value of the firm," said Al Stroucken, Chairman and CEO. "As we evaluate investment alternatives, the repurchase of our stock represents another attractive opportunity to deliver value for our shareholders."

Higher prices and lower interest expenses helped fuel stellar second-quarter results for O-I. The Perrysburg, Ohio-based company experienced net income of $231.3 million, or $1.35 a share, up from $149.7 million, or 89 cents a share in the same period last year.
Total sales jumped from $2 billion to $2.2 billion this quarter. Although the company admitted to selling fewer bottles, the surge in profit came from the sale of higher end bottles and the weakness of the U.S. dollar against currencies where O-I has operations.

Another bullish note is that analysts from Wachovia Equity Research have an outperform rating on the stock. The analysts mentioned “Additionally, while the company has lacked discipline in the past as it relates to free cash flow allocation, we note that a new
management team, on top of recent portfolio re-jiggering has positioned the company on a solid footing over the next few years.” They believe the stock should be trading in the $48 to $52 range.

Cramer suggested
seemed undervalued
with good growth potential

Company lost market share

Heavy nat gas user, no dividend