What a good stock looks like

What can a real oil company do? It can earn money.

By Jim Cramer Aug 6, 2012 9:57AM
Can we stipulate that this is a ridiculous market? Our payroll numbers weren't so strong as to warrant such a rally. The Europeans are doing nothing. China is hopium.

 

But it doesn't matter. The signals are all clear even for stuff of which it shouldn't be all clear.

 

Except for EOG (EOG). When it comes down to it, after these conference calls, only one company has been able to turn itself into an oil company from a natural gas company, and that's EOG. It is getting its due.

 

Don't get me wrong. The natural gas companies that are going oil are too cheap. The charitable trust bought Devon (DVN), which is ridiculously cheap, even stupidly so.

 

But EOG is much, much further along and is going for being a full-fledged oil player with the best Bakken and Eagleford properties. He's got monster finds.

 

The amazing thing about the journey of EOG is that it wasn't from natural gas to natural gas liquids, although it doesn't mind those. It's natural gas to oil. The other guys are taking the interim step, and it is killing them.

 

It's good to see what a real oil company can do. It can coin money. No wonder we are getting this fabulous move helped by higher oil prices.

 

And I don't think it's done, although I will say the third-day move in EOG, after Monday, has usually been a better entry point when it spikes like this.

 

 

Jim Cramer is a co-founder of TheStreet and contributes daily market commentary to the financial news network's sites. Follow his trades for Action Alerts PLUS, which Cramer co-manages as a charitable trust and is long DVN.

 

 

 

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6Comments
Aug 6, 2012 11:23AM
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THIS GUY USES WORDS LIKE  CHEAP AND STUPID I GUESS WE ALL KNOW  WE SHOULD RUSH OUT AND GET A BOAT LOAD OF THESE CHEAP, STUPID STOCKS BECAUSE THE GURU OF CHEAP AND STUPID HAS SPOKEN

Aug 6, 2012 3:39PM
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I didn't bother to read the article but I can easily describe what good stocks look like...they are any stocks Cramer doesn't like.  Really bad stocks are the ones he's acting like an idiot for.
Aug 6, 2012 12:51PM
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what does a good stock look like? it is clear you don't know what a good one looks like but you sure

know how to recommend one that is about to gap down...........stock of the year NYX in 2010

recommended at 96 now still in the 30's.........best stock of the dow for 2011 AA recommended at 18

still around 9.......................JUST 2 EXAMPLES OF WHEN YOU SAY BEST AND REALLY PUSH IT

YOUR IDIOT FOLLOWERS GET SLAUGHTERED

Aug 6, 2012 4:16PM
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LIFE IS SO LONELY..........NOBODY BUT CRAMER THINKS CRAMER IS GREAT
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Jim should look up Smoot Hovis below and get laid.  His writing is way too tight.   He's all wound up like a tight spring.   Calm down Jim and check out Smoot before it's too late.  Hate like hell to see you living in your car again.

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