Quiz Cramer: What's the Deal with the Refiners?
For his last act at Penn State, Cramer opened the floor to the students at the Smeal College of Business to ask him anything. And they did.
Karen from New Jersey asked about the refiners. With oil at record prices, why is this group languishing? She was particularly curious about Sunoco . How could this Philadelphia-based refiner be down when oil is so high?
Because Sunoco, along with the rest of the group, is getting squeezed, Cramer said. The refiners are buying crude for less than they can sell it. As long as prices stay so high, these stocks are not likely to make a big rebound, he said. However, some refiners still have plenty to offer even with oil prices where they are. Valero is cheaper than Sunoco and is more committed to a buyback, Cramer said, even though it did just have to take down profit expectations. But how about getting some exposure to natural gas? Cramer recommended ConocoPhillips to get the job done.Watch the video
to see Cramer explain how money has changed him as a person.
Jim's charitable trust owns ConocoPhillips.
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