STOP THE INSANITY

Jimmy on realmoney is surprising the heck out of me today. He is actually saying to buy the dip in the oil patch today. Here is what he says:


"Energy's right. At least right on schedule. We always see the midweek declines and then, starting tomorrow, Iran makes noise, or Nigeria threatens to blow up and the commodity and the group run in advance.

That means today might be the day to start buying some drillers or oils into the weakness.
A couple are really getting hit that I like very much. As usual, Kerr McGee (KMG:NYSE) and Occidental Petroleum (OXY:NYSE) are going down. Check out the unusually negative activity in Canadian Natural Resources (CNQ:NYSE) , which also seems cheap to me.

But please, please, don't overlook Halliburton (HAL:NYSE) . McDermott (MDR:NYSE) , as good as it is, is not as good as HAL subsidiary Kellogg Brown and Root in my mind and you are soon going to be involved in the same game as well as a pure-play oil service company that should trade on par with Schlumberger (SLB:NYSE) and Baker Hughes (BHI:NYSE) . Even the bears on the name think the sum of the parts is worth $90."

He never ceases to amaze me.