Cramer: Energy Could Be Next to Jump
NEW YORK (Real Money) -- Who will be next to levitate? Perhaps the oils? This group's actually done pretty much nothing this year.
You've got high-quality stocks like Schlumberger
And every time the futures are down, people bang the stocks down, even as that's proven to be a sucker's bet. If you look at how the individual stocks are trading, in reality, Brent's still higher than $100 and that's the only benchmark that matters.
How long can this underperformance last if the dollar stays weak -- still lots of hedge funds doing that trade -- and natural gas doesn't go back to below $3.50, the level where profits start getting crimped? How long can it last if we keep getting a bounce in oil at the $93 level here and $102 over there, even as today it is a tad weaker, on news that the Saudis are upping their production?
The group's more bifurcated than it used to be because of the activism component. For example, I think that Hess
Elliott has truly traced out some of the problems Hess has, and I have to admit I am dumbstruck at how poorly Hess has been run. I think the company's worth a great deal more than it is selling for.
It's the same with Occidental