Recent beatings in shares of
aren't indicative of cyclical weakness in the drilling space, Jim Cramer said Thursday on
"Stop Trading!" segment.
"There's tremendous fear and trepidation out there," Cramer said, noting that most investors would rather own
Helmerich & Payne
in the current market for drillers.
But Transocean's problems are specific to its own inability to execute, while EnCana is "too busy building 60-story towers" to drill for oil, Cramer said. "The most natural play in this part of the cycle is
National Oilwell Varco
," Cramer argued, saying its fall from $77 at Feb. 1 to about $62 now makes it "a huge buy."
"The oil-going-to-$40 thesis is being propounded by the same people saying that
is going to $40," Cramer said.
climb toward a 52-week high reflects the unwinding of too much pessimism, but he said the performance of U.S. drugmakers like Merck,
has been "awful" in comparison to their European counterparts.
Regarding Merck, "I think that it got overdone but you have to understand, if they lose a couple suits it's that bear $20 case again."
At the time of publication, Jim Cramer had no position in the stocks mentioned.
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