Cramer's Morning Take: Coterra Energy 10/1/24

Jim Cramer (0:02)

Jim Cramer here to share with you a sample of my take on the market from today's CNBC Investing Club morning meeting. We've got interest rates falling today, and why is that? It's called a flight to safety. This is because the possibility of Iran launching ballistic missiles. Now, let's go back to April. We did see a number of ballistic missiles launch. Obviously, the impact was not great, but you can see that this is now what's moving stocks, because before this, they were okay, but you did point out that the beginning of the month has been a bit of a tough time.

Jeff Marks (0:35)

Yeah, we were a little bit lower before that news broke. But yeah, I mean, today follows what we saw at the end of August, at the end of September, excuse me, the beginning of the months of August and September, where we had weakness, right? Beginning of August, you had the Yen Carry trade blow up. September, there was weakness around the jobs report, jobs report this Friday. So, a little bit of selling related, similar to that.

Jim Cramer (1:00)

So, you think it may be one off, that it's not just at the beginning of the month that you get this, or do you think there's just more about the climate number?

Jeff Marks (1:06)

Well, yeah, I think the jobs obviously matter, right? We know the Fed is more focused on, you know, the jobs, the labor market in many ways instead of inflation. But I think we also have to see what happens in the Middle East as well. I don't think we can necessarily ignore that. You did have oil initially lower this morning, reversed higher.

Jim Cramer (1:24)

Right.

Jeff Marks (1:25)

Yesterday we were debating this in the home stretch. Coterra, you know, three and a half yields. Well, you know, I think we should buy Coterra.

Jim Cramer (1:32)

I think we should buy Coterra. I'm going to be very clear about this. Three and a half percent yield, natural gas comes back.

Jeff Marks (1:37)

Yeah.

Jim Cramer (1:37)

This is not an expensive stock. We have, we could buy some here. If there is something terrible that happens in the Middle East, this thing really goes, it spikes. And otherwise, natural gas is up because of the demand from data centers, as we see from GE for Nova.

Jeff Marks (1:52)

Yeah, natural gas at its highest levels yesterday. I think you have to go back to June, and you had the stock down about 10% or so from June. But we've been very, you know, I would say cautious around energy the last few months. Right, but we've been no energy. Having added to the position.

Jim Cramer (2:07)

That's why I think this represents great value.

Jeff Marks (2:10)

Yeah, well, it comes back to a price, right? And at 24 and change, as we mentioned yesterday, debatingly, we'll buy some today. No longer have the oscillator overballed, which I think is a good sign. And that should probably continue to work lower as the selling continues throughout today.

Jim Cramer (2:28)

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SPEAKER_3 (2:46)

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