Doggy-dog stock? No more, says Cramer

US oil & gas bargain play

(Click for video linked to a searchable transcript of this Mad Money segment)

Considering its stock is down about 60% in 2 years, why on earth is Cramer getting behind Swift Energy.

Over the same period rivals such as Carrizo Oil have rallied significantly as investors gobbled up shares betting that the energy renaissance underway in this nation will benefit the sector.

But investors haven't bet on Swift. In fact, they've bet against it.

And yet Cramer is bullish?

Gandee Vasan | Stone | Getty Images

The issue, Cramer says, is the way in which the Street views Swift. Currently, it's viewed as a pure play on nat gas. "And the nat gas market has been hideous for years now because the U.S. is glutted," Cramer explained.

Hence the decline.

Most of Swift's rivals moved away from nat gas and into crude oil two to three years ago. "Swift Energy, however, despite its name, was really late to the game. They were slow," Cramer said with a sly smile.

However, better late than never.

That is, the energy renaissance is such a powerful theme Cramer believes there's plenty of room for Swift to transition away from nat gas and into crude oil, even now.

And he believes the real estate held by Swift plays into the theme quite nicely.

"Swift holds acreage in the Eagle Ford that's extremely high quality real estate, Cramer explained.

Specifically, "Swift owns roughly 65,000 acres in La Salle and McMullen counties, which are located right in the sweet spot of the Eagle Ford. Last year, the company drilled 71 wells in these core areas and they had a 100% success rate. In other words, every time they drill they're hitting oil here," Cramer said.

In addition, Swift is selling off land in Louisiana that has not been profitable.

"Therefore, after Swift sells off its Louisiana acreage and focuses on drilling for oil in the Eagle Ford, this will become a very different enterprise," Cramer explained.

When the transition is complete, Cramer believes it will be a far more valuable company; one that at current levels is too cheap.

"Swift looks like it's about to change its stripes in a big way, and I would be a buyer before the transformation."

Read More from Mad Money with Jim Cramer
Costco about to blaze new trails?
Cramer: Bubble talk loud, but informed?
Discounts surfacing in the market

Now make no mistake, with a market cap of $570 million, Swift is a relatively small company and, as is the case with all small companies, an unexpected catalyst can call the entire thesis into question.

Nonetheless, Cramer thinks the risk is worth the reward.

Call Cramer: 1-800-743-CNBC

Questions for Cramer?

Questions, comments, suggestions for the "Mad Money" website?