Gas is getting close to $3 a gallon or more, and in part it is because of attacks on Nigeria's oil infrastructure, said Jim Cramer on his
"RealMoney" radio show Monday. Rebel groups are influencing the price of oil by fighting Nigeria's military, kidnapping workers and blowing up oil facilities, he said. Supply is tight, and oil facilities are easy targets, Cramer added, making it the "perfect storm" for higher oil prices. There are also threats on oil pipelines in Iraq and Iran, but he is focusing on Nigeria because it is the world's fifth-largest oil producer. If you take out Nigeria, prices will spike, Cramer said. When you read about problems in Nigeria, he believes that the play is Willbros Group ( WG). Cramer called the company the antidote to pipeline blowups because it is Willbros' job to rebuild pipelines as they are blown up, and it looks like that will be a steady stream of work. He said that Willbros is the speculative play, and that Schlumberger ( SLB - Get Report) is the nonspeculative, blue-chip play on unrest in Nigeria. He said the French company is the largest oil-services company in the world and now that the stock has split, that's an opportunity to buy. If you held a share of Schlumberger at $130 last week, it looks like your stock dropped to $65. However, it really means that you now have two shares worth $65 a piece. While there's no real increase in the company's valuation, it makes it easier to buy, he said. Cramer likes the company because companies that want to drill anywhere in the world have to hire people to do it. And Schlumberger is the company they call when they want to drill, he said, because it provides technology, project management and information solutions.
He also believes that there is money to be made in road repair and construction. The company he likes is Caterpillar ( CAT - Get Report), which is up 31% year to date. He said it's by far the best large-cap equipment machinery company in the world. He also likes Ingersoll-Rand ( IR - Get Report) and Kubota ( KUB). Cramer congratulated a caller for the way she played Pacific Ethanol ( PEIX - Get Report), which is up 50% year-on-year. The caller took a third of her position off when the stock ran higher, and Cramer said that if she takes half of her remaining shares off at this point, she'll be left with only "the house's" money on the table. He also told a caller not to worry about the "healthy pullback" in Mindspeed Technologies ( MSPD). It is part of a group of tech companies that have had a "remarkable resurgence" because they are involved in the fiber-to-premise rollout. This means that they are part of the switch from copper to fiber in our phone lines, which will allow telephone companies to deliver services like video on demand. Cramer believes that this implementation is nowhere near complete and that buyers should use this pullback as an opportunity to buy more shares.
Bob Iger now runs the company, and Cramer said that Iger is a well-liked team builder who is leading Disney through a major turnaround. It's still not his favorite stock, but Cramer said it was all right to own it. Disney and ABC are making their most popular programming free online. Viewers will be able to pause, forward and rewind shows, but they will not be able to skip the embedded commercials. Ford ( F - Get Report) and Procter & Gamble ( PG - Get Report), which is another stock Cramer owns for his charitable trust, are among the companies that have signed on; but Cramer said that these companies are not where the big money will be made. Instead, he said to take a look at Akamai Technologies ( AKAM), which makes the technology that allows consumers to stream video onto their PCs. He also said that Akamai teaches investors a lesson in pain and patience. Cramer said the stock has seen a 140% return over the year, but some people are complaining because it has dropped a few points from its 52-week high hit on April 3. The stock lost value over the last week or two, but it's still a good investment, he said. For investors who listened to his recommendation back in November, did their homework and bought the stock, they saw it jump from $17 to $30. Now it's down $3 since the beginning of April, a drop that some people can't handle. If you can't stand to see a high-flying stock come down in this way, Cramer said that's okay. One way to deal with these large shifts can be to have this type of stock be only a small portion of your overall portfolio. Then, he said that diversification will cushion some of the bigger falls. Or, Cramer said, just don't own a stock like this at all. "There are other ways to make money," he said. Cramer believes that there is money to be made in the host of new cell-phone innovations that are hitting the market. The New York Times recently reported that cable companies are developing wireless products that allow customers to program their DVRs from cell phones; and USA Today reported that new UMA (unlicensed mobile access) technology will allow cell-phone users to make phone calls at wireless hotspots. Cramer said that it's time to start thinking about Openwave and that he'd give listeners more on this stock later this week on his "RealMoney Radio" show.