Jim Cramer Says “We Have No Idea What’s Really Going To Happen” and Discusses These 12 Stocks

10. Phillips 66 (NYSE:PSX)

Number of Hedge Fund Holders In Q4 2024: 47

Phillips 66 (NYSE:PSX) is a diversified American oil and gas company. The firm operates in the chemicals, oil refining, storage, and transportation industries. It made its way to Cramer’s morning appearance as activist Elliott Investment managed to secure two seats on the firm’s board. Phillips 66 (NYSE:PSX)’s shares dropped by 7.5% on the news as investors weighed whether Elliott’s demands of business unit spinoffs would generate uncertainty for the firm’s future cash flows. For his part, Cramer attributed the fall to an overreaction:

“[On share price movement after activist investor Elliott won two board seats] Yeah that’s a reaction. I think there are people who felt that there could be an immediate transaction or something which was never the case. I think that’s an overreaction. Not a great group right now but it’s an overreaction.”

Cramer has discussed Phillips 66 (NYSE:PSX) several times this year. For instance, in May he remarked that the firm was being unfairly treated as an oil company while it was a refiner instead. In January, he praised Phillips 66 (NYSE:PSX)’s business acumen after the firm bought NGL assets for $2.2 billion. Here’s what Cramer said:

“And listen, that’s not even an exhaustive list of M&A activity this week. Well, on Monday, Phillips 66 announced a deal to acquire certain privately held natural gas infrastructure assets for over $2 billion… Looking at the transactions we’ve seen just this week, while some of them likely would’ve been challenged by Biden’s ideologically driven regulators, most of them seem pretty justifiable. All of them make great business sense…”