Slick plays for this market

Oil and oil services stocks represent the best buys and could do well on the next euro-related dip.

By Jim Cramer Dec 6, 2011 10:46AM

the streetYou know you have a strong oil market when Transocean (RIG) makes you more than 10% in an equity offering in no time flat. Last week, this most disgraced and scorned oil service company priced 26 million shares at $40.50, an unthinkable sale, given how much stock RIG has bought back at much higher prices.

 

Monday, though, Transocean traded as high as $45.50, a remarkable move that shows the power of this rally in oil.

 

I think it's lasting. Two of my favorites are Clean Harbors (CLH), which is the best fracking clean-up play, and Core Labs (CLB), the quintessential oil technology company whose instruments can tell you what's underneath better than just about anyone’s.

 

But CLH and CLB are truly the exceptions. The oil service industry index is at $126, down $40 from its high even as oil is very near its high. That's pretty nutty, as these companies are having a terrific time. I am surprised there haven't been more BJ Services/Smith International-like deals given how compelling the long-term stories are turning out to be.

 

When you get a deal like RIG that's tight as a drum, that tells you there's plenty of oil capital looking for a home.

 

There are a ton of bargains. Schlumberger (SLB) and Ensco (ESV) are two owned by Action Alerts Plus. But I think any one of these could do well on the next European-related dip. I put that in because we haven't had one of those dips as of late, but when they occur, they are so devastating that you have to be able plug in something you really want at that moment.

 

I think oil and oil services stocks represent the best buys in this market.

 

Action Alerts Plus, which Cramer co-manages as a charitable trust, is long SLB and ESV.

  

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jim cramer

Jim Cramer is a co-founder of TheStreet and contributes daily market commentary to the financial news network's sites. Follow his trades for his charitable trust. 

13Comments
Dec 6, 2011 3:16PM
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Do yourself a favor, keep your money in your pocket and any from Cramer picks....unless you like loosing large sums of cash.  Guys an actor.  His act was over yrs ago.  Sarcastic
Dec 6, 2011 3:28PM
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If you're a member of the Government-Banking Cabal, you can make some money on inside info. Otherwise, you're just red meat.
Dec 6, 2011 12:34PM
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Get this, "there are a ton of bargains out there"  relative to what? I trust used car salesmen to "save me a ton" more then I trust you to find a bargain.
Dec 6, 2011 3:22PM
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don't diss actors....the guy is a gap down pump and dump crook

 

how's his favorite darden doing?

Dec 6, 2011 3:26PM
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the crap he peddles for his masters doesn't just go down ,it GAPS down

 

if you look at his most enthusiastic picks you will find a serious amount of gap down

losers..........THE GUY IS A CROOK

Dec 6, 2011 11:55AM
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ESV ?   REALLY did you even look at the trading range?  Bargain?  Hate to see what you think a steal is...   Paid TV actor, nothing more.
Dec 6, 2011 1:13PM
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this new elixir will cure all ailments.....after your purchase you will attend

a stand up which will include such lame jokes you will need more medicine

 

meanwhile you will be lyfao at the ego of the shyster as he laughs at his own lies

Dec 6, 2011 3:50PM
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cnbc shills and political hacks must be getting the word. markets have been fairly reported and some of the hacks are talking about things we can make money on instead of their own agenda. we will continue to hold their feet to the fire. Buy American and support our Troops.
Dec 7, 2011 9:19AM
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I love these uninformed commentators to this blog: "we have only 5 10 years of oil left".  The untapped reserves in our country alone will last for 100 + years and probably considerably longer.  All we need are the obstructioniste to get out of the way.  By the way, how about substantiating your claims of reserves with some facts; instead of regurgitating someone elses unsubstantiated pull numbers out of the air data.  Mine:  look at the new fileds being developed in North Dakota alone:  Many more potentials like this; especially with the new technologies.
Dec 7, 2011 4:10AM
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Why does this mental midget get paid to make **** up? I want his job.

Dec 7, 2011 9:13AM
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Oil stocks are a good pick??  I thought oil and gas were irrevelent: just build a couple million wind turbines to generate "free" energy that nobody but the rich could afford.  It's called; which way is the wind blowing today; or whats the popular topic of the day.

 

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off course oil and companies that deal with it are increasing in value because we only have 5 to 10 years of easy to get to oil left on the planet. After that oil hits like $500 a barrel easy. 

Also when Israel attacks Iran Jan. 23, 2012 and Iran then blows up the oil fields in the middle east and shuts down the strait of Hormuz the same hour then oil will reach $500 a barrel easy.

Oil is a no brainer for the next ten years then it's a dead industry. 

Pretty much Europe is going to collapse next year and the Chinese are going to keep the Fed and Bernanke from printing money and bailing them out. So the stock market is going to take 70 to 90 percent loses next year easy.
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