Jim Cramer: National-Oilwell Varco, Sociedad Quimica, Staples
Stock Chart for National Oilwell Varco Inc (NOV)
National-Oilwell Varco Inc. (NOV), the biggest U.S. maker of oilfield equipment, was recommended by CNBC host Jim Cramer on his ``Mad Money'' television program yesterday.
Demand is coming from companies such as Exxon Mobil Corp., ``which can't find enough rigs to drill in Indonesia to get the oil out of their maturing fields,'' said Cramer, a market commentator and former hedge-fund manager.
``We've got a rig shortage of colossal proportions,'' he said.
National-Oilwell controls more than half the market for new rigs, Cramer said. The Houston-based company also has a product called the rapid rig, which is smaller, lighter and can be set up faster than a regular rig, he said.
``If you've got a company that makes a lot of something we're in short supply of, that's a company that can raise prices,'' he said.
Shares of National-Oilwell climbed 52 cents, or 0.8 percent, to $67.30 in after-hours trading on the New York Stock Exchange yesterday. The stock closed at $66.78 in regular trading.
Other companies in this category recommended by Cramer include Sociedad Quimica y Minera de Chile SA (SQM/A), Chile's biggest fertilizer maker, which will benefit from the current lithium shortage because ``they have the monopoly on non-drug lithium.''
Earlier this month, Dell Inc. (DELL) recalled 4.1 million laptop computer batteries amid concern they can overheat and burst into flames. Sociedad Quimica is one of the few suppliers of lithium at a time of soaring demand, Cramer said.
``Dell's exploding batteries got a lot of press, but no one talked about the effect of the massive lithium battery recall on lithium prices,'' Cramer said. ``That's the play off the Dell recall. We need millions of new batteries and we need lithium to make them.''
Cramer also recommended AMN Healthcare Services Inc. (AHS), which provides temporary nurses to hospitals. The San Diego-based company will benefit as demand for nursing grows at a time when fewer people are in training or remaining in the profession, he said.
``The nursing shortage only gets worse by the hour and should be with us for a long, long time,'' he said. Low wages have deterred people from becoming nurses at a time when an aging population is boosting demand for health services.
Shares of AMN Healthcare climbed 53 cents, or 2.4 percent, to $22.55 in New York Stock Exchange extended trading, after closing earlier at $22.02.
In the ``Lightning Round,'' Cramer recommended Devon Energy Corp. (DVN), FedEx Corp. (FDX), Comcast Corp. (CMCSA), Staples Inc. (SPLS), Halliburton Co. (HAL), Tata Motors Ltd. (TTMT), Yamana Gold Inc. (YRI), Nabors Industries Ltd. (NBR), Tate & Lyle Plc (TATE) and Satyam Computer Services Ltd. (SCS)
Cramer told viewers to avoid Netflix Inc. (NFLX), Blockbuster Inc., CB Richard Ellis Group Inc., Office Depot Inc. (ODP), United Parcel Service Inc. (UPS), TTM Technologies Inc. (TTMI), Imperial Sugar Co., Jos A. Bank Clothiers Inc., Biocryst Pharmaceuticals Inc. (BCRX) and Vonage Holdings Corp. (VG)
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