Lenny Dykstra
With the market looking to recover lost ground from the recent downturn, we can find exceptional value if we know where to look; the key is to focus on industries with the most strength and highest likelihood of recovery.
For example, speculation that Warren Buffett was moving to purchase parts of Countrywide Financial(CFC Quote - Cramer on CFC - Stock Picks) should tell investors that great buying opportunities still exist even as markets tank. After all, when Buffett opens up his wallet, that means other investors might want to consider following his lead. Today's selection, Occidental Petroleum (OXY Quote - Cramer on OXY - Stock Picks), is a worldwide oil, gas and chemicals behemoth. With questions surrounding U.S. economic strength, it's increasingly important for investors to mull buying large companies that operate at home and abroad -- this allows the company to maximize profits no matter the strength of the dollar or the state of the domestic economy. The company has been busy acquiring companies to build its footprint. In January 2006, OXY completed the acquisition of Vintage Petroleum for about $3.8 billion, adding properties to OXY's California holdings as well as significant reserves in Argentina. In September 2006, OXY acquired oil and gas assets from Plains Exploration and operations in California and the Permian Basin in West Texas. The company boasts an extraordinary free cash flow of almost $3 billion. Free cash flow is a financial metric I often utilize in my investment analysis -- a good number means a company is well-equipped to weather any adverse conditions it may encounter.
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