Although oil stocks got a bit of a bounce today and Friday, Jim Cramer said on TheStreet.com TV's Wall Street Confidential video Monday that he still doesn't trust these stocks.People knew the price for oil stocks were ahead of the price for oil, but they held these stocks up and now they have cratered, he told Aaron Task, the host of Wall Street Confidential. When oil prices were this high before, Exxon Mobil ( XOM) was in the $60s, whereas right now it is in the low $70s, Cramer said. He also said that he was "blindsided" by the ConocoPhillips ( COP) disclosure of poor margins. After saying "a lot of really good things" at its meeting a few weeks ago, Cramer said he was surprised at Conoco's news. Cramer said he is trying to figure out whether Conoco is a buy or sell, but is leaning toward it being a buy because the company is "very committed" to its stock. He said he likes Chevron ( CVX) for the dividend. Continuing onto health care, Cramer said it's strange that after being down, drug stocks are picking up precisely when Democrats are out talking about how the government should negotiate with drug companies to lower drug prices for Medicare beneficiaries. "Maybe the issue with drug stocks is that it's clear that you can't change the Medicare policy like we thought," Cramer said.
Apart from believing "the drug companies spread around the money and are very good lobbyists," Cramer feels Medicare Part D has worked. Concerning the rebound in tech stocks, Cramer said he believes the analysts have been "far more negative than the companies." He looks at the current situation as a five-week buying opportunity head of Microsoft ( MSFT) launching its Vista product. Cramer said he sees "no reason to abandon the group and far more reasons to get behind it." Moreover, he called Motorola ( MOT) "a problem company" and said he is "sick and tired" of Tellabs ( TLAB) blaming its underperformance on integration in the telco sector. It's obvious that Tellabs doesn't have a product portfolio, and with Motorola it's a "leadership issue," where the CEO Ed Zander has been "curiously absent," Cramer said. People should also keep in mind that Motorola is Sprint's ( S) biggest supplier and that Sprint has been inconsistent, he said. Although the first half of the year is seasonally tough for biotechs, Cramer told Task he believes these stocks could "play catch up with pharma, which has been moving better." Cramer believes this because the sector's major players, Amgen ( AMGN) and Genentech ( DNA), underperformed in the second half of 2006. However, because Cramer believes it is a hard group to invest in, he advised buying the biotechs in a basket.