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

He says Transocean and EnCana have problems but National Oilwell is a 'huge buy.'
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Recent beatings in shares of

EnCana

(ECA) - Get Report

and

Transocean

(RIG) - Get Report

aren't indicative of cyclical weakness in the drilling space, Jim Cramer said Thursday on

CNBC's

"Stop Trading!" segment.

"There's tremendous fear and trepidation out there," Cramer said, noting that most investors would rather own

Hewlett-Packard

(HPQ) - Get Report

than

Helmerich & Payne

(HP) - Get 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 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

Google

(GOOG) - Get Report

is going to $40," Cramer said.

Cramer noted

Merck's

(MRK) - Get 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,

Pfizer

(PFE) - Get Report

,

Wyeth

(WYE)

and

Bristol-Myers

(BMY) - Get 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.

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