Lenny Dykstra
The relatively low price of oil during the first quarter led to less-than-stellar earnings from the oil companies, and the resulting selloff is a great opportunity to use deep-in-the-money (DITM) calls in anticipation of the summer driving season.
Last week, the average gasoline price in the U.S. reached a record high. With that in mind, today I will invest in BP(BP Quote - Cramer on BP - Stock Picks). In my column on March 20, I selected BP and scored a $1,000 win in one day. At that time, I cited BP's extraordinary 4.12% annual dividend, because a strong dividend often attracts prudent value investors. With a return on equity (ROE) coming in at 27.2% and free cash flow of over $12 billion, BP has the capacity to generate shareholder value. Many experts predict the price of oil will once again rise significantly this driving season, and BP, which is definitely one of the "big oils," is definately undervalued. The company's new CEO, Tony Hayward, will look to continue the success BP achieved in John Browne's run at the company. Although Hayward took the helm earlier than expected, investors knew this move would happen eventually. The fact that the transition came three months earlier than expected should just allow Hayward to implement his ideas immediately.Game of Life
Although major league teams have played less than one-quarter of their regular season games thus far, the divisional races are beginning to separate into the haves and the have-nots. The Braves and Mets continue to jockey for the lead in the NL East, with the Marlins and Phillies struggling to achieve the .500 mark. In the NL Central, the Brewers have opened a sizable margin over the Cubs, the only other .500 or above team in the division. The NL West boasts four teams above .500 in the Dodgers, Giants, Padres, and Diamondbacks, all of whom are within two games of each other.
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