Stop Trading!
Jim Cramer's Stop Trading! Clean Up on Coal
TheStreet.com Staff
02/02/07 - 03:01 PM EST
You can't go wrong buying U.S. coal miners Arch (ACI) and Peabody (BTU), Jim Cramer said Friday on CNBC's "Stop Trading!" segment.
Cramer said the coal stocks are cheap because they "already got killed once," so they aren't expensive. Cramer said Arch and Peabody are good bets as the nation mulls over its energy situation, though he'd stay away from Massey (MEE), which he said is "poorly run."
Cramer also likes Chevron (CVX), saying it's the best bet right now among the oil majors, though he also likes Mararthon (MRO). Cramer said Chevron has "gotten religion" about expanding its reserves and is buying back stock. He believes the stock could go to $82-$85 from a recent $74.50.
Cramer took issue with a Wachovia call on the media sector that favored Viacom (VIAB) at the expense of rivals Time Warner (TWX) and Disney (DIS). Cramer said the fundamentals at Viacom are "blah," so he'd avoid that stock. But he is bullish on the other two, saying he likes what Disney chief Bob Iger is doing and that CEO Richard Parsons is "unlocking value" at Time Warner.