Cramer: How To Play A Broken OPEC

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Countries participating in this weekend’s Doha meeting failed to reach a deal to limit oil production after Iran canceled its attendance last-minute, leading Saudi Arabia to withdraw from the production freeze agreement.

Ahead of the meet, Jim Cramer explained why he believes the OPEC is broken and how investors can take advantage of the weakness in oil to boost their portfolios.

On Friday, Cramer predicted a deal would not be reached in Doha: "There are way too many countries involved, and OPEC itself is basically broken; it’s every country for itself in this oil market."

Related Link: Wall Street Not Surprised At Lack Of Weekend Agreement In Doha

So, how can individual investors play the weakness in oil?

Cramer first looked into Lululemon Athletica inc. LULU, which had “a remarkable quarter. The stock flew up and it’s now come down.” In contrast with Nike Inc NKE and Under Armour Inc UA, Lululemon has been “well far behind the market,” he said, recommending to “pull the trigger” on this stock.

Cramer then went into Valeant Pharmaceuticals Intl Inc VRX, which he characterized as a black box for he does not know what is going on in there. “I can’t recommend it even for calls."

On PepsiCo, Inc. PEP, he said “I believe any hiccup in the stock is a tremendous buying opportunity," citing CEO Indra Nooyi’s “fabulous job steering the company.”

Cramer likes Unilever plc (ADR) UL. “The business is on fire, particularly with emerging markets,” he said. “If you don’t own it, I think you should buy half early in the week, and then half after they report.”

On Yum! Brands, Inc. YUM’s split up, Cramer said “I think there’s going to be a ton of value created when this occurs."

Finally, Cramer said that while he does not like LendingClub Corp LC, Verizon Communications Inc. VZ is a No. 1 pick with him: “I think it’s an incredibly well-run company with a great yield and good growth."

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.

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Posted In: Analyst ColorCNBCLong IdeasJim CramerMediaTrading IdeasOPEC
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