Cramer's 'Mad Money' Recap: Hitting the Gas

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When the market is getting crushed, sooner or later you need to start bargain hunting, Jim Cramer told viewers of his "Mad Money" TV show Tuesday.

Bargains are found in ice-cold sectors that people hate, ones that can make market players money. And the bargain right now is in the natural gas sector, he said. The stocks in this sector have become too cheap and are trading like value stocks.

Right now, said Cramer, natural gas is trading in the lowest gas-to-oil ratio that he can remember. Cramer believes the bears are going to be dead wrong when it comes to the natural gas market.

When we have a warm winter, natural gas goes down one point; but when we have a harsh winter, it could go up four points, said Cramer, and that's a good risk/reward.

Since we are value hunting, said Cramer, we want the stock that represents the best bargain in the natural gas market, and that is Carrizo Oil & Gas(CRZO Quote). It is Cramer's play, he said.

Houston-based Carrizo is a large player in the Barnett Shale, a source bedrock in northern Texas that is producing natural gas through bacteria breakdown.

Carrizo, which as of December 2005 operated 106 oil- and gas-producing wells, also has exposure to the Gulf of Mexico, Cramer said.

The bottom line is that this is not a hot group or a hot stock, it is a cold stock in an ice-cold sector, he said. Carrizo is a cold stock because natural gas is way too cheap.

When a caller inquired about Cheniere Energy(LNG Quote), Cramer said he liked it when it was lower, but did not recommend it now.

"The problem with liquefied natural gas is that I don't think that any of its terminals are going to be built," Cramer said.