Jim Cramer's Stop Trading! Picking Energy's Winners

Companies that build energy-industry infrastructure like Fluor(FLR Quote) and Foster Wheeler(FWLT Quote) look cheap and should be bought, Jim Cramer said on CNBC's "Stop Trading!" segment Wednesday.

"Let them come in, buy these," Cramer said. These companies operate on "seven- and eight-year cycles. You don't cancel a big petrochemical plant because oil's been down for three days." On the other hand, "sell Valero(VLO Quote) because refining margins have been crushed."

Cramer also recommended being selective among drilling-service providers after Transocean's(RIG Quote) "Valentine's Day massacre" on Tuesday.

"Every single one is being taken out and shot. Some of these guys should be survivors." Cramer named FMC(FTI Quote), Lufkin(LUFK Quote) and National Oilwell Varco(NOV Quote) as potential winners.

Regarding Schlumberger(SLB Quote), Cramer argued that mutual fund managers bid it up too far, and "now it's coming back down." With Halliburton(HAL Quote), you're getting its Kellogg Brown & Root oilfield service unit "for free" at the current quote.

Cramer also praised the congressional testimony of new Federal Reserve chairman Ben Bernanke, saying "he's going to do the right thing and you're not going to see the inverted yield curve get any worse." He recommended brokers as a play on Bernanke, not just blue chips like Goldman Sachs(GS Quote), Lehman(LEH Quote) and Bear Stearns(BSC Quote), but second-tier banks like Wells Fargo(WFC Quote) and Capital One(COF Quote).

"The bears are going to run into trouble here because they're hanging their hats on a 6% fed funds rate," Cramer said. "They're not going to get it."

Among asset managers, Cramer decried a selloff in one of his favorites, UBS(UBS Quote). "This is a group that doesn't move if rates are going the wrong way. The whole complex of journalists and bears has been weighing in on financials and it looks like the stocks aren't going to take it anymore."