This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Cramer: Hess Making Right Decisions

NEW YORK ( TheStreet --

Debra Borchardt:

Jim, we have a lot of news coming out on Hess (HES - Get Report). Hess has been, as we know, dumping assets over the last few months. They're also now going to get out of a refinery and then we've got an activist investor, Elliott Management, saying they're going to take a large stake and nominate some board members. Stock is up, so what's left of Hess?

Jim Cramer:

Right. Well, this is very good. Because it's conceivable to someone like Elliott says, "Listen. We've got to sell the company." This is a company that's chronically undervalued and chronically undervalued because it has tremendous E&P assets, tremendous.

Debra Borchardt:

And retail.

Jim Cramer:

Yeah. But it had this refinery business that is buying high-cost crude and refining it and selling it at high prices versus say... HollyFrontier (HFC - Get Report)...Hess's refineries are in the wrong places right now. We've had a remarkable change in our energy policy in the country where a lot of really good light, sweet crude is coming from Eagle Ford and Bakken whereas Hess might then be importing oil from other countries, which is expensive and priced on rent. So if you're priced on the lower price in America and you're refining you get that high price at the gas pump. Hess is paying high prices for gasoline, getting the high price at the gas pump and it's obscuring how many great things are happening at this company. So I think it's a very good move by them. I think the stock can go much higher.

Debra Borchardt:

Where do you think it might go?

Jim Cramer:

We were saying it could go to $70.

Debra Borchardt:


Jim Cramer:

Yeah. I think that this is a very undervalued company with tremendous assets including the Bakken, by the way. I think a lot of companies would like to own this company.

Debra Borchardt:

They also got rid of their oil storage terminals so it seems that they're kind of holding on to the stuff that's making them money as opposed to the stuff that wasn't working.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
HFC $35.59 -2.20%
HES $59.63 0.76%
AAPL $93.78 -1.10%
FB $117.37 0.55%
GOOG $693.75 0.40%


Chart of I:DJI
DOW 17,768.03 -62.73 -0.35%
S&P 500 2,059.70 -16.11 -0.78%
NASDAQ 4,764.9010 -40.39 -0.84%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs