The company priced 6.5 million shares at $129 each and the stock immediately flew up to $131. He contrasts this with FireEye (FEYE) and other secondary offerings in the Internet space that have collapsed immediately. He says this means those stocks are under distribution and people do not want those offerings.
But Cramer says people clamor for anything oil-related, and Concho has a presence in the Permian Basin. Cramer calls this prime location "the great growth story going on right now" with 20% to 30% growth for companies in the Permian.
Separately, TheStreet Ratings team rates CONCHO RESOURCES INC as a "buy" with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CONCHO RESOURCES INC (CXO) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income, expanding profit margins, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."