Another Good Chance to Enter Oil Stocks

Editor's Note: This originally ran on RealMoney on Jan. 7. Cramer holds EnCana and Halliburton in his Action Alerts PLUS portfolio.

What's Anadarko ( APC) thinking? Go take a minute right now and read EnCana's ( ECA) annual report. It won't take long. EnCana's got more prospects than any other company in North America and it's expanding its drilling, not contracting it. And I bet it still will buy back more stock than Anadarko.

I used to own Anadarko for Action Alerts PLUS, and I have to tell you, it was a real headache. The company tends to do a lot of strange and crazy things that upset shareholders. Today's announcement of a drilling cutback is one of those. That's why I suggest you look at the future, EnCana, where if it had the money, it would use every rig in North America to prospect for oil.

We are early in the middle innings of this drilling boom. I know a lot of hedge fund folks want to say, "OK, new year, new ideas -- forget the oils and the drillers." But big money and retail investors don't think like that. They stay with the concept. They will stay with the drillers well into extra innings, even if the game ends in the ninth!

I say that you are getting still one more great opportunity to get into this group. I own Halliburton ( HAL), but I am eying both Transocean ( RIG) and Baker Hughes ( BHI) as being right for the moment, not to mention, of course, the deep OSX calls.

Anadarko. Sure, let that be your bellwether if you must. Not me. I will take everyone else in the business over it.

P.S. One of the keys to successful investing is a smart portfolio strategy. So you might want to consider a FREE TRIAL to TheStreet.com Action Alerts PLUS, where I trade my own $3 million portfolio and advise you on my every move before I act.

At the time of publication, Cramer was long EnCana and Halliburton.

James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS. While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column to jjcletters@thestreet.com. Listen to Cramer's RealMoney Radio show on your computer; just click here. Click here to buy Cramer's latest book, "You Got Screwed!" Click here to order Cramer's autobiography, "Confessions of a Street Addict."

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