Navigating Oil with Jim Cramer

Jim Cramer posted something about oil. Do you want to know about this? Insider Monkey brings us " Navigating Oil with Jim Cramer" for us to read on.  On December 13, Jim Cramer talked to viewers of his popular “Mad Money” show about  oil. “If the technicals are any indicator,” Cramer said, “the greater oil service space could rise by as much as 40 percent in the next six months. As the price of oil continues to climb, he thinks oil drillers could see business boom.”

OIH (OIH): Cramer explained that investors could buy OIH, the oil service exchange-traded fund (ETF). As of the close of trading Tuesday, OIH was trading at $115.04, 16 times its earnings. While OIH  returns may have disappointed lately, its 3-year trailing return is 14.72%, compared to 9.43% for its category. Even now, with a year-to-date return of -10.20%, OIH is still outperforming its category, which has lost -11.19% since the first of the year. OIH also has some hedge fund love. At the end of the second quarter, Tye Schlegelmilch’s Sonterra Capital and Jim Simons’ Renaissance Technologies both had sizable positions in OIH, $395M and $76M respectively. However, Cramer advised against OIH for this play. Instead, he thinks that investors would be better off picking the best stocks from within the ETF. Cramer particularly likes offshore drillers. To know more about Jim Cramer, see the website of Insider Monkey.