Cramer: Continental Resources (CLR) is 'Too Cheap' Given Opportunity
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Price: $74.27 --0%
Rating Summary:
19 Buy, 24 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 0
Rating Summary:
19 Buy, 24 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 0
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Continental Resources Inc. (NYSE: CLR) shares are trading higher Tuesday morning following a bullish recommendation from Jim Cramer on Monday evening's Mad Money.
Cramer spoke with Continental's CEO Harold Hamm. Hamm said due to lack of pipeline capacity in Texas, supplies are restricted, hence a pricing gap between Brent and West Texas crude. In order to take advantage of higher prices, Hamm said Continental ships 75 percent of its oil to places outside of Texas. Since shipments from the Bakken shale travel by rail, it's easy to plan out where to ship based on price expectations, Hamm concluded.
Hamm said Continental prices are cheap, which is why the company repurchased 100,000 of it's own shares, and will do the same thing again soon.
Continental has also hedged oil at very good prices, which means concerns falling crude prices will hurt the company are simply not an issue.
On demand, Hamm says he's not seeing the drop-off that has been circulating. Prices are expected to moderate, Hamm said, but overall the market is still having trouble keeping up with global demand.
Cramer agreed, reiterating his Buy rating on Continental. He thinks the stock is still too cheap given market opportunities.
Continental is trading over 3.5 percent stronger ahead of the bell Tuesday.
Cramer spoke with Continental's CEO Harold Hamm. Hamm said due to lack of pipeline capacity in Texas, supplies are restricted, hence a pricing gap between Brent and West Texas crude. In order to take advantage of higher prices, Hamm said Continental ships 75 percent of its oil to places outside of Texas. Since shipments from the Bakken shale travel by rail, it's easy to plan out where to ship based on price expectations, Hamm concluded.
Hamm said Continental prices are cheap, which is why the company repurchased 100,000 of it's own shares, and will do the same thing again soon.
Continental has also hedged oil at very good prices, which means concerns falling crude prices will hurt the company are simply not an issue.
On demand, Hamm says he's not seeing the drop-off that has been circulating. Prices are expected to moderate, Hamm said, but overall the market is still having trouble keeping up with global demand.
Cramer agreed, reiterating his Buy rating on Continental. He thinks the stock is still too cheap given market opportunities.
Continental is trading over 3.5 percent stronger ahead of the bell Tuesday.
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