NEW YORK ( TheStreet --

Debra Borchardt:

Jim, we have a lot of news coming out on Hess ( HES). Hess has been, as we know, dumping assets over the last few months. They're also now going to get out of a refinery and then we've got an activist investor, Elliott Management, saying they're going to take a large stake and nominate some board members. Stock is up, so what's left of Hess?

Jim Cramer:

Right. Well, this is very good. Because it's conceivable to someone like Elliott says, "Listen. We've got to sell the company." This is a company that's chronically undervalued and chronically undervalued because it has tremendous E&P assets, tremendous.

Debra Borchardt:

And retail.

Jim Cramer:

Yeah. But it had this refinery business that is buying high-cost crude and refining it and selling it at high prices versus say... HollyFrontier ( HFC)...Hess's refineries are in the wrong places right now. We've had a remarkable change in our energy policy in the country where a lot of really good light, sweet crude is coming from Eagle Ford and Bakken whereas Hess might then be importing oil from other countries, which is expensive and priced on rent. So if you're priced on the lower price in America and you're refining you get that high price at the gas pump. Hess is paying high prices for gasoline, getting the high price at the gas pump and it's obscuring how many great things are happening at this company. So I think it's a very good move by them. I think the stock can go much higher.

Debra Borchardt:

Where do you think it might go?

Jim Cramer:

We were saying it could go to $70.

Debra Borchardt:

$70?

Jim Cramer:

Yeah. I think that this is a very undervalued company with tremendous assets including the Bakken, by the way. I think a lot of companies would like to own this company.

Debra Borchardt:

They also got rid of their oil storage terminals so it seems that they're kind of holding on to the stuff that's making them money as opposed to the stuff that wasn't working.

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