Sorting Out Analyst Disagreements
When analysts disagree, investors win, Cramer once again told viewers, as he dove into the recent analyst action surrounding
(STO - Get Report).
On March 9, an analyst at
(DB) raised its rating on Statoil from neutral to buy, while another analyst at
(GS) downgraded the company to sell.
Cramer said that after a "premature" downgrade last year, Deutsche Bank now feels that Statoil has a lot to look forward to in 2012, with production ramping up 6% to 7% this year and even more in 2013. The firm also liked that Statoil has less exposure to refining and marketing of oil, making is essentially a pure play on its exploration and production expertise.
The Goldman Sachs analyst, on the other hand, cited valuation for his sell recommendation, saying essentially that shares of Statoil have run too far, too fast. The analyst said he prefers others in the oil patch which now offer higher dividends.
So who's right? Cramer said in the analyst world, a firm simply cannot like every stock in a given sector, it must choose its favorites and its least favorite companies. That's precisely what happened at Goldman, he explained. That said, Cramer told viewers that he hates valuation calls and prefers recommendations made on catalysts and earnings, something Statoil is delivering on.
Cramer said Statoil has a proven track record of delivering on its production goals, and just because Goldman Sachs may have other favorites in the group, that's no reason not to own this terrific oil driller in a market where both firms expect the price of oil to continue to rise.
Cramer was bullish on
Kodiak Oil & Gas
Cramer was bearish on
In his closing remarks, Cramer admitted he was a little disappointed at Apple's dividend and stock buyback announcement earlier today. He said it wasn't because of the amount of the dividend, as there's always time to raise it in the future. Nor was it because of the buyback, a tactic he's not a fan of anyway.
Cramer said he was disappointed that Apple chose this weekend, the weekend of its latest iPad launch, to make the announcement. He said the dividend announcement stole the thunder from the iPad and Apple would have been better served to have waited for a down day in the markets to give its shares a shot in the arm.
"Apple buried the lead," said Cramer, as he's now more certain than ever that the company will beat his target of $50 per share of earnings.
--Written by Scott Rutt in Washington, D.C.
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