"We're entering a new era of high oil prices," Cramer told viewers, as he kicked off a week-long series on stocks that will benefit from permanently high oil prices. His first pick, Fluor ( FLR), the engineering and construction company that gets 60% of its revenues from the oil and gas industry. Cramer currently owns shares of Fluor for his charitable trust, Action Alerts PLUS . Cramer explained that Fluor is the top engineering and construction firm on earth, with excellent know-how and the reputation to prove it. Yet shares of the company are off 17% for the year, falling some 20 points from its 52-week high. Shares of Fluor now trade at just 14 times earnings, while historically the company usually trades at 19 times earnings, with its peak at 22 times earnings. Flour did miss estimates when it reported earnings on Nov. 3 and offered only conservative guidance, but Cramer noted that the company's higher costs stemmed from a single wind farm project that has kept a lid on the stock. THat project is now 90% complete and should only impact one additional quarter, he said. But more importantly, Cramer said that engineering and construction companies should be valued on their backlogs. Fluor currently has a $42 billion backlog of business, up 26% from last year. That compares to its rivals, all of which saw a decline in their backlog thanks to Euro fears and the economic slowdown. With all of its divisions doing well, the company's stock buyback program and $7 a share in cash, Cramer said the Fluor is set to prosper as oil prices remain high for the foreseeable future.
Cramer was bullish on Baidu.com ( BIDU), Kohlberg Kravis Roberts ( KKR), KKR Financial Holdings ( KFN), SPDR Gold Shares ( GLD), ValueClick ( VCLK) and Google ( GOOG). Cramer was bearish on Tesla Motors ( TSLA), iShares Silver Trust ( SLV) and Carnival ( CCL).
Lightening Up on Tech High-Fliers
In his "No Huddle Offense" segment, Cramer opined on the resurgence of the high-multiple stocks like Salesforce.com ( CRM), Chipotle Mexican Grill ( CMG) and even Netflix ( NFLX). Cramer said this current rally was started by companies like Apple ( AAPL) and Google ( GOOG), but was fueled even further by the takeover of SuccessFactors ( SFSF) by SAP ( SAP). Cramer characterized the move as a classic multiple expansion, in which the markets are willing to pay more for future earnings. But Cramer remained cautious, saying that he likes buying these high-fliers when the earnings rise, not the market's perception of those earnings. He advised lightening up on these names and waiting for next earnings season to buy more. --Written by Scott Rutt in Washington, D.C. To contact the writer of this article, click here: Scott Rutt. Follow TheStreet on Twitter and become a fan on Facebook. To submit a news tip, send an email to: firstname.lastname@example.org. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by clicking here. For more of Cramer's insights during the Lightning Round, click here .