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Digging Into a Disconnect

An advantageous loss of the link between a stock and its fundamentals won't last.
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Just because I entered the day fully invested does not mean I'm not watching this market. At $73.75, Halliburton (HAL) is trading a full 5 points higher than Thursday's low, and after you read this note, I'm going to sell 300 of my 1,500 shares. The stock is 28% above my average cost-basis, and I'm going to roll these profits into buying 500 shares of Nabors (NBR) .

At $32.02, or just 9.7 times expected full-year earnings, Nabors isn't just cheaper than the other drillers out there, its valuation is down with the large-cap exploration names. I don't believe this disconnect will last much longer, especially with the massive buyback program behind the stock. This purchase will give me a total of 4,700 shares of Nabors, or 4.2% of the overall portfolio.

Regards,

James J. Cramer

DISCLOSURE: At the time of publication, Cramer was long Halliburton and Nabors.

Send email to james.cramer@thestreet.com.