Bullish on Oil
With crude oil back over $80 a barrel, Cramer told viewers that the oil drillers are back. He said the Schlumberger (SLB) conference call was the most bullish industry call he's ever heard.
Cramer explained that on the Schlumberger call, the company's CEO said that oil's return to $80 a barrel is based on real demand, not speculation, and that demand will kick off a whole new drilling cycle as drillers begin drilling in earnest to cash in on higher prices.
Based on this bullish sentiment, Cramer said investors now "must own" an oil driller, as he believes oil is headed back to $100 a barrel over the next 12 months. But which stock to own?Cramer said he'd be a buyer of Schlumberger, even here at the stock's 52-week high. He said the company's size and expertise allows it to operate all across the globe. "There's a lot to like," he said. But Cramer gave top honors to the smaller Weatherford (WFT), a stock which he owns for his charitable trust,
Financial Reform WinnersInvestors looking for a winner in the financial reform game should look no further than Intercontinental Exchange (ICE), Cramer told viewers, but only for a trade. Cramer explained that one of the big changes of the pending financial reforms currently working their way through Congress is to bring derivatives trading out of the back room and into the open on a public exchange. He said that Intercontinental Exchange, or ICE, will be the big winner if this this happens. While derivatives trading only accounts for 5% of ICE's earnings, the boost from the pending legislation is not baked into the company's numbers. But Cramer cautioned that perception may be better than reality, which is why he's not endorsing ICE as a long-term investment. ICE, which has already had a gigantic run, is trading at its 52-week high. Cramer said this may be one case where investors need to buy high and sell higher. For longer term investors, Cramer said the CME Group (CME) will likely be the longer-term winner when it comes to reforms. He also gave the nod to NYSE Euronext (NYX) with its 3.5% yield.
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