Dan Dicker, Energy contributor at TheStreet.com, talks to Jim Cramer about the melting away of oil prices and the related oil stocks. Many of these stocks are well below levels that were reached in the springtime of 2014, when oil was reaching it's lows in the low $40's. Dicker believes that the oil sector must experience a wide scale consolidation and that many of the large cap independent exploration and production companies will need to find a merger partner or be outright bought by one of the cash rich super majors like Exxon Mobil (XOM) or Chevron (CVX). The relative low prices in shares of the independent U.S. producers will begin to prove tempting. Dicker cites Hess (HES), Continental Resources (CLR), Chesapeake Energy (CHK) and EOG Resources (EOG) as prime takeover candidates. A big buyout or two would signal to Dicker that the long bust cycle in oil is nearing its end.
More from Video
A Technical Look at the New Dow Jones Industrial Average
Salesforce, Amgen and Honeywell will give a lift to the DJIA going forward.
Conagra Brands Looks Tastier After Its Upgrade to Buy
CAG has hung onto the bulk of its recent gains, and could rise to the $50 area, according to the charts and indicators.
Biogen Bulls Get a Lift From Quant Upgrade and Strengthening Charts
Breaking down an approach to the long side of this biotech stock.
Is Renewable Energy the Defensive Stock Opportunity You're Missing
AMSC CEO discusses that and China challenges.
Takeda Pharmaceutical CEO Talks Big Pharma Trends
One of pharma's biggest CEO's talks M&A action on the exchange.
Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation.
If you have questions, please contact us here.