The Action Alerts PLUS charitable portfolio increased its holdings in Occidental Petroleum, the Houston, Texas based oil and gas company, as one of the uses for the cash freed up from old positions last week; Jim Cramer spoke with TheStreet’s Rhonda Schaffler about the increased investment in Occidental. Cramer announced in an alert to AAP subscribers last week that there were going to be a lot of opportunities stemming from all that is happening in Greece’s potential default in the next few weeks; as a result, he and research director Jack Mohr decided to pull money out of some positions to free up cash for when new opportunities emerged. Oil stocks are currently trading below where they were back when oil was between $43 and $45 a barrel. However oil prices are now seeming to stick to their current prices and have not been dropping below $58 or $59 a barrel. Cramer says that this stickiness in recent oil prices is very important for these energy companies and why AAP keeps increasing its holdings in oil companies. Cramer explains that he likes Occidental Petroleum specifically because of its 4% yield, compared to the roughly 2% on treasuries, the company has very good cash flows and the stock is way too low. After making news on Wednesday over the closing of the La Boulange stores and its new mobile payments revamp, Cramer shared his views on what Starbucks’ news means to investors. Cramer says that ‘the reason I like Starbucks so much is that comparable sales are accelerating’ but that in the end it is a technology story, exemplified in the recent mobile payment initiative.
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