Jim Cramer on Texas Pacific: "My Problem Is, in the End, It Is Going to Trade"

Texas Pacific Land Corporation (NYSE:TPL) is one of the stocks that Jim Cramer shared takes on, along with navigating market shortages. A caller inquired if it makes sense to start a small position in the stock and “buy on the way up.” Cramer replied:

Well, okay, my problem is, in the end, it is going to trade. They do have a Bolt data center business, but it’s still going to trade on oil and gas. You know, we liked it last year. Oil and gas, not my favorite. I think you can do it on a spec, but you’re going to be betting, by the way, that oil’s going to go higher. That’s what’s going to move it.

Texas Pacific Land Corporation (NYSE:TPL) manages large areas of land and oil royalties and provides water sourcing and disposal services. The company generates revenue through land leasing, easement grants, and the sale of raw materials, in addition to its perpetual oil and gas royalty holdings. A caller asked about the stock during the January 15 episode, and Cramer responded:

Well, you know, look, we recommended the stock a couple years ago. We had a good run. We’re not inclined to like the oil stocks this year. We just think that the president wants oil down, and this president seems to get a lot of what he does want. I’m not going to get in the way of him and his $50 price target for oil.

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Disclosure: None. This article is originally published at Insider Monkey.