Cramer's Stop Trading! The Exxon of Coal (1/31/11)

by: Miriam Metzinger

Stocks discussed on Jim Cramer's Stop Trading! TV Segment, Monday January 31.

FedEx (NYSE:FDX), UPS (NYSE:UPS), Chesapeake (NYSE:CHK), Devon (NYSE:DVN), CNOOC (NYSE:CEO), Peabody (BTU), Micron (NASDAQ:MU), Exxon Mobil (NYSE:XOM)

If you want to play a Suez Canal crisis "which I don't think you should," said Cramer, buy FedEx (FDX) and UPS (UPS).

As expected, though, the Egyptian crisis has even larger implications on energy stocks. Cramer says Devon (DVN) has made all the right moves making its company domestic, and like Chesapeake (CHK), Devon might attract a deal with Chinese company CNOOC (CEO) which has "unlimited capital." Cramer wouldn't worry about the company's natural gas assets, since it also has oil.

Cramer says "coal is on fire, coal is the most in demand of any fuel." The best-in-show is Peabody (BTU), the "Exxon (XOM) of coal" except that it has more aggressive growth. Cramer says coal stocks are much less expensive than most people realize.

In tech, Cramer's pick is semi stock Micron (MU) which is "way too cheap" at $10.


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