Cramer Says No to Marathon, Annaly; Suggests Kodiak, These 2 Stocks Instead

Jim Cramer made the following calls on July 22nd, 2013. What do you think about his picks?

Marathon Oil Corporation (NYSE:MRO): Jim Cramer ranked this stock a Sell. Cramer previously ranked this stock a Buy on July 28, 2011. The stock’s 52-week high is $37.72, and its 52-week low is $25.04.

Cramer likes oil, but thinks you have to be in the right businesses to take advantage of the U.S. energy boom. Because West Texas crude oil has been granted access to more markets via infrastructure development, that means the price spread between it and Brent crude has vanished, leaving refiners like marathon left to pay a higher price. According to Cramer, this makes Marathon a sell and not the best place to make money off the U.S.’s oil spree.

MRO

Annaly Capital Management, Inc. (NYSE:NLY): Jim Cramer ranked this stock a Sell. Cramer previously ranked this stock a Sell on May 29, 2013. The stock’s 52-week high is $17.75, and its 52-week low is $11.19.

The Mad Money host sounded the alarm on Annaly Capital during the lightning round, telling viewers to sell. “I want you to sell it. The yield did not make up for the losses. I hope it bounces. If it gets to $13 or $14 you can sell. I like it, but it is a tough environment,” Cramer said, giving very specific advice on how to deal with the stock. In first quarter results, Annaly reported it had lost about $40 million in revenue from the same period last year.

NLY

Kodiak Oil (NYSE:KOG): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Buy on July 1, 2013. The stock’s 52-week high is $9.97, and its 52-week low is $6.92.

Kodiak was more to Cramer’s taste when it came to making money off of oil, since they will be able to sell it at a higher cost than they previous were able. For this reason, he recommended buying the stock. Sales volumes for Kodiak are up 83 percent since the second quarter last year, selling 23,200 barrels of oil equivalent per day.

KOG

Nordic American Tanker Shipping Ltd. (NYSE:NAT): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Buy on March 22, 2013. The stock’s 52-week high is $12.98, and its 52-week low is $7.00.

Nordic American was another oil play suggested by Cramer to make money from the changing domestic and global energy scene. With Europe still flailing and the U.S. recovering, Cramer suggested the play since day rates for ships are rising.

NAT

Northrop Grumman Corporation (NYSE:NOC): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Buy on May 29, 2013. The stock’s 52-week high is $88.81, and its 52-week low is $62.80.

Cramer defied conventional wisdom in his assessment of Northrop Grumman, since he advocates buying the defense company in the face of government cutbacks from the sequester earlier this year. The company is not only making itself more lean all the time, cutting inefficient businesses, according to Cramer, but it also makes products that are surviving the defense rollbacks, namely drones. The company is also working internationally, providing parts for fighter planes in Italy.

NOC

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