Cramer thinks oil isn’t going back to $40.00, but Wall Street has abandoned the sector and Main Street is embracing it. National Oilwell Varco (NOV-NYSE) is on Cramer has liked and he still likes it. It was at $76.00 a year ago and is down $10.00 from there. Cramer said the company has done very well and they have a great future because their wells are new and they are nearly a monopoly. Wall Street thinks that the comparables are too tough for the street to want, but he thinks that the stock could still go up. Hydril that Tenaris bought today is very similar, and if the same multiples this stock would go to $90.00 at the buyout price. Cramer thinks that even though Wall Street hates the sector this one is undervalued and you can buy it while it is still cheap. He has been positive on this one before, and shares rose about 1.1% to $67.30 in after-hours.
Jon C. Ogg
February 12, 2007