T. Boone Pickens Calls It Again

Another stock to watch in the T. Boone Pickens portfolio is Suncor Energy(SU Quote - Cramer on SU - Stock Picks).

Suncor is Pickens' largest holding, with $139 million invested as of the last regulatory filing. Suncor's two main segments are oil sands -- the recovery of oil from places where it's typically more expensive to extract oil, such as the tar sands of Canada -- and natural gas. Suncor acquires, develops and produces natural gas from reserves in western Canada.

Suncor trades at 10 times cash flows, yet the full potential of this company is unknown. If and when oil hits $80 a barrel, oil companies will have to increasingly look toward natural gas reserves and the Canadian tar sands for oil. Pickens is making a huge bet that this is the future of energy production.

Pickens also looks for alternatives to oil, given that users of oil will have to look for different sources of fuel if oil prices continue on higher than $80. With that in mind, a speculative small-cap play for Pickens is Greenbrier(GBX Quote - Cramer on GBX - Stock Picks), a company that manufactures railcars for the transportation of everything from grain and solid waste to pressurized tank cars for transporting liquid petroleum gas, light oil and ethanol. As we become more dependent on fuel sources that cannot be transported via pipeline -- ethanol for instance -- Greenbrier should enjoy greater demand.

Pickens' portfolio can be thought of as a "peak oil index." He is invested in every aspect of the oil business and its alternatives. With the success of Transocean and GlobalSantaFe, it might pay to check out the other stocks in Pickens holdings, including Halliburton(HAL Quote - Cramer on HAL - Stock Picks), Peabody Energy(BTU Quote - Cramer on BTU - Stock Picks), Occidental Petroleum(OXY Quote - Cramer on OXY - Stock Picks), Valero(VLO Quote - Cramer on VLO - Stock Picks) and Schlumberger(SLB Quote - Cramer on SLB - Stock Picks), as well as more than a dozen others.

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