Rethink, Reallocate Oil Off BP

How can BP (BP - commentary - Cramer's Take) not afford to buy someone? When you have production declining for five quarters, when you have a 5% decline just this quarter -- hurt by outages, of course -- don't you have to look at buying a Devon (DVN - commentary - Cramer's Take) or a Marathon (MRO - commentary - Cramer's Take) or even a ConocoPhillips (COP - commentary - Cramer's Take)?

Before oil started declining, these stocks were pure earnings stories. But now that crude has peaked they have quickly -- more quickly than I ever expected -- become valuation stories.

However, we have lacked a catalyst. The catalyst, though, is starkly there in a major that doesn't have enough oil to do its job. Only an acquisition can jumpstart things because the finding costs are much higher in the field than on Main Street.

Before you panic in these oils with crude at $55, keep the BP in mind. I keep coming back to the fact that I don't want to have 10% of a portfolio in oil, which is what the S&P 500 is. However, 5% seems right, a very correct allocation.

Random musings: I've found your new favorite tool: TheStreet.com Ratings Screener. Use it to find exactly the stock you're looking for -- c'mon, I know you resolved that this is the year you get more involved in stocks. This is the easiest way yet to make sense of a universe of more than 6,000 names. It's all here, sorted by market cap, rating and more.

At the time of publication, Cramer had no positions in any of the stocks mentioned in this post.

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