Jim Cramer's Stop Trading: Permian Basin Is 'Red Hot'

NEW YORK (TheStreet) -- Concho Resources (CXO) priced 6.5 million shares at $129 in its secondary offering and became the main focus on CNBC's "Cramer's Stop Trading" segment. 

TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said Concho Resources is a play on the "red hot" Permian basin.

The company has a pipeline that will open soon, bringing WTI crude oil to the Gulf of Mexico, where Concho Resources can get more advantageous pricing. 

Cramer pointed out that the stock has held up well given the secondary offering. He also liked the positive price action in Baker Hughes (BHI) following a downgrade from Bernstein. 

"This Concho deal shows you that the Permian remains the single greatest growth story in America today," he concluded, out of "all industries." 

-- Written by Bret Kenwell in Petoskey, Mich.

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At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.

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