Apache: On the War Path to $120
Apache is the latest on the list of $80 stocks that Cramer thinks are going to $120.
This independent oil and gas exploration and production company is among the stocks that are leading this bull market, he said. The big institutions have been buying Apache, and that’s what drove Apache to its present level of about $84. They should push it even higher.
Apache buys unloved properties from big firms like BP and Exxon Mobile at discount prices and then whips them into shape. APA has a track record of thriving where others find it difficult, and it has very low production costs.
Apache has increased production guidance too. Its reserves have grown for the past 21 years, and it increased production in 27 of the last 28 years. Sixty-nine percent of those reserves are on U.S. soil, which means Apache is a more stable stock to own. No unnecessary fears of a socialist president, say, Venezuela’s Hugo Chavez, expropriating Apache assets.
Another good point: The stock is cheap – trading at just 10 times consensus estimates – compared to rivals.
Bottom Line: Cramer recommends buying APA before it gets away from you.
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