 |
||
 |
Articles About Jim Cramer
Articles by Jim Cramer Read profiles on the legendary Read a collection of essays money manager, Jim Cramer. written by the brilliant James J. Cramer |
 |
 |
||
 |
Running w/ the Bulls (Forum)
Archives Browse the Discussion Board! Browse past recaps of Mad Money. Post your thoughts on any topic! Search by date. Vey easy to navigate! |
|
 |
||
 |
 |
April
13, 2006
'Oil's Well'
Let's start right now with a 'mon-back. I think it's time to get 'mon-backed' into oil in a big way.
Oh yeah, the price of crude is sky high; but not all the stocks are up. That's not the best of it. Right now, we are drilling twice as much as we were just a few years back. But you know what? We're finding exactly the same amount of oil as we used to. That's extraordinary to me and it says we are running out of the easy oil to find. I want to say that, when I see that happening, you know what it says to Cramer? Oil be going higher! It's too bad that the guys on wall street don't have a brain. Everybody on the street is looking for much lower oil prices. Crude oil is now at $69.47 a barrel. I regard it as perfectly acceptable if you thought oil was going to stay at the same price. That would put you way ahead of the street, which still believes that oil is going down! Now, I think all the analysts are going to have to raise their estimates for crude oil; they're all going to have to get on board! And, when they do raise those estimates, which they will do by earnings season, in a few weeks, every single oil co.'s estimates are going to have to go up, because the crude price these guys are using is way too low. When that happens, if you own some oil, you can make some Mad Money! But I don't want you to own just any oil co. Okay? That's why I have spent most of this week trying to figure out two to recommend to you. Tonight, I've got the two oil plays that should make you the most money. I am talking about the Mad Money - the house of pleasure - when the number bumps come, and the price of crude keeps marching higher. Take these down. Buy these. Buy them as soon as you can, and I hardly ever say that on jim Cramer's Mad Money. The first one I want you to look at Occidental Petroleum (OXY)! OXY is the largest exploration and production co. Buy, buy, buy! Why do I like OXY more than all the others? It's because OXY is the most levered - it has the most to gain - from high crude prices. And that's exactly what we be getting. More than 80% of OXY's up streams volumes are crude oil - no refining. Right now, 20 of 23 analysts that are covering rate it a buy or above. Even though the analysts are on board, OXY trades at just 9x next year's earnings - half of the market multiple. And that's below the industry avg. Of 10x next year's earnings. So this baby is crying cheap. OXY's also growing production in a way that the others aren't. Remember, if we double drilling and output is staying the same, then the avg. Oil co. Isn't increasing output at all. But, according to my friends at J.P. morgan, OXY could increase production at 7-11% clip from 2006 to 2010. Plus, OXY has one of the best track records of all recovery and production growth among the biggies. And hey, let's not forget that OXY is one of the most integrated chemical co. Around. I haven't even gotten to the best reason why I like OXY yet. The numbers are way, way too low. The analysts just have these absurdly low estimates for the price of crude, which is the driving force behind OXY's earnings. These numbers are coming up, and OXY should come up with them. The bottom line!: I think you get into OXY before the street gets its act together, and figures out that oil is still going higher. And OXY is the best way to play it. OXY is my first gift to you, and my first way to beat the pump, and start making money, rather than feeling like you've been scalded when you pay $60 this weekend.
'You Know The Drill' - A continuation of the above topic, crude oil. This dissussion focuses on Energy Partners (EPL). 'Chipping Away'- Jim tells you why he, a long time Intel fan, now sees Advanced Micro Devices (AMD) as the microchip company to own. Lightning Round |
|
 |
| ...
you
can get started investing with as little as $25? And that some
online discount investment brokers, such as Sharebuilder will allow you
to open an account with no minimum? (There are other online brokers such as E*Trade, Scottrade, that do have minimum deposit requiremnts.) Alot of online brokers allow "dollar based investing". This is when you invest a specified dollar amount on a regular basis. This allows you to purchase 'partial' shares of a company's stock. For instance, if I am set to invest $50 a month in Google, and Google is trading at $400 at the time my order goes through, I would have purchased 0.5 shares of Google. It is a good & effective tool to get started investing, as well as getting comfortable in the stock market. -TCR |
      |
|||