Nobody's Where It's At: Oil Drillers

Nobody has enough exposure to drilling. Everyone's been so burned in this group, expecting that the stocks must be bought and sold, that I see the scrambling going on and I can't believe how underowned these are. But that's what happens when you have one foot out the door at all times on these stocks.

Look, the simple truth is that even after the run these stocks have had, they are just too cheap to leave. A Nabors (NBR - commentary - Cramer's Take), a Transocean (RIG - commentary - Cramer's Take), a Weatherford (WFT - commentary - Cramer's Take), let alone a Schlumberger (SLB - commentary - Cramer's Take) or a Halliburton (HAL - commentary - Cramer's Take), can just keep going higher here as long as oil stays above $50. We are nowhere near that low.

I keep going back to GlobalSanteFe (GSF - commentary - Cramer's Take), or Lufkin (LUFK - commentary - Cramer's Take) or Tetra Tech (TTEK - commentary - Cramer's Take), and I ask myself, "How many of these big funds really own anything beyond a Schlumberger or a Hal? How many of them have held on to a Baker Hughes (BHI - commentary - Cramer's Take)?"

Lest you think you are nuts to buy them at these levels, consider Weatherford. Here's a stock that only recently took out its 2000 high! Or Halliburton, which only breached its 2000 high a few months ago. Are these companies really worth that little, considering that in 2000 we believed oil was going to trade at $28 forever?

Yeah, still the place to be. And nobody's there.

I know they are all at their highs. One solution: Put a half position on and hope the stocks come down. But with this worldwide cold weather, don't bank on it.

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At the time of publication, Cramer was long Halliburton.

James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for ActionAlertsPLUS. Listen to Cramer's RealMoney Radio show on your computer; just click here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click here to get his second book, "You Got Screwed!" and click here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by clicking here.

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