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Jim Cramer is bullish on Total ( TOT), "one of the worst-performing oil stocks out there," because of the company's new attitude toward growth, he said Thursday on his "Mad Money" TV show. The company, which is headquartered in France, is now so committed to growth, it plans to build a nuclear power plant in Alberta, Canada, just to mine and refine its oil sands there. It's very expensive to extract oil from oil sands, and it only makes sense when oil is above $40 a barrel, said Cramer. But, "that's where we are, and that's where we're staying" -- Total plans to capitalize on it, he said. With its stock ending the regular session Thursday at $134.42, Total is "undervalued," said Cramer, and it deserves to be up double the 30% gain it has seen this year. Cramer sees Total going to $150 and "maybe a whole lot further." He also mentioned that he liked ConocoPhillips ( COP), Petro-Canada ( PCZ), which also has oil sands, and EnCana ( ECA), which has coal-bed methane. Cramer recommended doing a 'mon back* on oil and gas stocks if they go down post Hurricane Rita.
Exhale and Contract
Good things happen to good companies, which is why it's important to own best-of-breed stocks, said Cramer. In the oil-service sector, that means owning Halliburton ( HAL), which announced today that its subsidiary KBR had received a large construction contract for a gas-to-liquids facility from a subsidiary of Royal Dutch Shell ( RD). Despite the contract win, Halliburton's stock closed the regular session down $1.05 to $65.20. Cramer said Halliburton's stock would move back up once analysts figure out how beneficial the contract will be, and raise their earnings estimates. Don't wait for that to happen, he said. Get in before that. Even at $65, the stock is a "huge buy," Cramer said.