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Jim Cramer's Stop Trading!: Drilling Through the Pain

He says Transocean and EnCana have problems but National Oilwell is a 'huge buy.'

Recent beatings in shares of


(ECA) - Get Free Report



(RIG) - Get Free Report

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


(HPQ) - Get Free Report


Helmerich & Payne

(HP) - Get Free Report

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

(NOV) - Get Free Report

," 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


(GOOG) - Get Free Report

is going to $40," Cramer said.

Cramer noted


(MRK) - Get Free Report

climb toward a 52-week high reflects the unwinding of too much pessimism, but he said the performance of U.S. drugmakers like Merck,


(PFE) - Get Free Report






(BMY) - Get Free Report

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.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for, Inc., and CNBC, and a director and co-founder of All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or is related to the specific opinions expressed by him on "Mad Money."

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