Jim Cramer Isn't a Big Fan of This Buffett Stock

"I was quite surprised to hear that Mad Money host Jim Cramer wasn't too upbeat on shares of Occidental Petroleum during his show's Lightning Round segment recently. Indeed, Occidental is now quite a well-known Warren Buffett stock, one that's continued to decline since Berkshire Hathaway initiated its position a while ago. Indeed, if Buffett's conglomerate is hanging onto its position, shouldn't other investors also be holding on or even buying more into weakness? That's the big question."

"Of course, recent news surrounding Berkshire's $9.7 billion has been making waves in shares of OXY. The stock fluctuated wildly, especially after it was revealed that the price Berkshire will pay was around $300 million, less than the original $10 billion that some expected, for the OxyChem assets. Either way, some Wall Street pros think the OxyChem sale is a plus for Occidental Petroleum. Given the market's reaction in shares of OXY (the stock is up more than 24% since its year-to-date low in April), I'd argue it's a great deal for Berkshire as well given it's been a number of years since Berkshire made a splash this big."

"Either way, Cramer has not been the biggest bull on oil and especially not Occidental, which he described as "not even a good one." Though the price of admission into OXY shares screams of deep value, I'd have to agree with Cramer in that the name probably isn't the best place to put new money into the markets."

Jim Cramer expressed a negative view of Occidental Petroleum, calling the company "not even a good one." Occidental is identified as a well-known Warren Buffett stock that has declined since Berkshire Hathaway initiated its position. Berkshire's OxyChem transaction drew attention, with headlines mentioning $9.7 billion and reports that Berkshire will pay around $300 million for the OxyChem assets versus $10 billion expected by some. The OxyChem news contributed to large share fluctuations and a more than 24% rebound from the year-to-date low in April. Bank of Nova Scotia analyst Samantha Hoh upgraded OXY and raised the price target to $55.

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