Buy Bristow Group

Mad Money viewers can’t seem to get enough of Cramer’s oil-and-gas stock recommendations. Who can blame them? Right now it’s about the only sector that’s working.

Offshore Play: Bristow
Offshore Play: Bristow   

Bristow Group is a continuation of last week’s focus on clean offshore drilling. This company contracts out the helicopters that transport workers out to oilrigs. As these rigs move further into deep water – maybe not in the U.S., but in other countries – there’s more demand for the bigger choppers that Bristow operates.

Bristow enjoys a duopoly with CHC, which was taken private, giving both companies pricing power. The shortage of much-needed larger helicopters – they’re being sent to Iraq – helps out too, keeping those barriers to entry for competitors nice and high.

Overseas sales play a big role here, accounting for 77% of Bristow’s business. The company’s expecting $1.5 billion in revenue going forward, which his great for considering Bristow’s market cap is only $1.1 billion. A good chunk of that revenue will come from Brazil, Southeast Asia and Western Africa.

If Bristow got the same valuation as CHC when it got taken private, this $48 stock would be worth $68. Forty percent upside – not bad.

Be careful, though. Cramer said he’s expecting oil and gas stocks to take a hit after Wednesday’s inventory number is reported. Wait for that pullback to buy, if that’s what you choose to do.

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