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Cramer: 'Focus on the Drillers'

The latest Baker Hughes Rig Count number reported Friday showed that the drilling boom continues, Cramer said during Stop Trading!. But analysts aren’t keeping pace with the trend, and that leaves investors a great opportunity to profit.

The number of domestic and Canadian rigs was “off the charts,” Cramer said, with the US count jumping 6.5% from January to February, while those in Canada increased 23%. As more and more rigs come online, the drillers – Weatherford International , Baker Hughes and others – will increase their fees, and that in turn could result in earnings beats next quarter.

So “I think people need to focus on the drillers,” Cramer said.

The elections in Iraq will be especially important for Weatherford, as that country is WFT’s “breadbasket,” the Mad Money host said. Stability there will result in more drilling and as a result more business for Weatherford.

  • Cramer's Best Stocks in the Tech Sector

Cramer also reiterated his call on Apple, saying the stock is a buy ahead of the iPad’s commercial release. The play on AAPL in past product cycles has been to ride the stock higher until the device hits stores, he said, “Because that’s the peak.” Investors can “buy it back a few days later” after the hype has died down. Well, Apple today announced that the iPad would be available to consumers on April 3.

Cramer said he expects big things from the iPad, and not just in terms of its popularity among consumers. Businesses are apparently looking for ways to utilize the device as well, and that would open up a new market, one historically dominated by PCs, for Apple.

As a result, “This will be the biggest product that Apple has ever had,” Cramer said.

Paychex is the play on today's jobs report. Cramer said the stock is cheaper than Automatic Data Processing and offers a better 4% dividend yield.

Lastly, Cramer pointed out that containerboard sales are ramping up, and Temple-Inland and International Paper are great plays on it. Containerboard is used to ships goods, and its increased usage usually means that the economy is improving. The consumer has been showing signs of strength lately as well, as seen in the retail earnings reports over the past few weeks. Cramer said he likes American Express as a trade on the rising number of transactions, calling the company’s most recent quarter “great.”

Cramer’s charitable trust owns Apple and Weatherford International.

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