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With oil prices down, investors should look for stocks that are too cheap compared with others in their sector, Jim Cramer told viewers of his "Mad Money" TV show Wednesday.

To this end,

Gardner Denver


is a smart play.

Gardner Denver makes compressors, blowers, and vacuum pumps that aid oil companies in cleaning wells before drilling. The parts Gardner Denver makes can also be used to clean up industrial waste, so it isn't a pure oil play but ought to benefit when oil prices rebound.

Compared with similar stocks such as

Baker Hughes



National Oilwell Varco

(NOV) - Get Free Report



(SLB) - Get Free Report

, Gardner Denver's multiple is too low.

"We're in a huge period of capital expenditure for companies that need to get oil," Cramer said. When oil prices go up, Gardner Denver's stock should rise. Additionally, the company generates 50% of revenue from sales outside of America, meaning it's not entirely dependent on the American consumer.

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"Earnings estimates that are too low breed higher stock prices," Cramer said. Because a large proportion of its international earnings come from the European Union, Gardner Denver makes money abroad that will convert to dollars at an incredibly generous rate. A top-tier company in all the markets it serves based on market share, Gardner Denver is a good buy, Cramer said.

In the News

Cramer took a moment to look at two pieces of this afternoon's news. If

General Motors'

(GM) - Get Free Report

labor deal is approved and Warren Buffett takes a stake in

Bear Stearns

( BSC), Cramer said the


should reach 14,548, as he has predicted.

The second oil-sector play Cramer recommended was with Canadian energy trusts. Thanks to the Canadian government's recent decision to tax these companies, there has been a selloff of Canadian energy stocks. Those taxes hurt the companies' stocks, but they the oil fields they control, Cramer said.

Foreign companies are starting to buy the Canadian energy trusts. Abu Dhabi National Energy Co. bought Canada's



at a huge premium of 33%.

Cramer noted out six stocks that are in a similar position to Primewest:

Canetic Resources

( CNE),




Baytex Energy

(BTE) - Get Free Report


Provident Energy Trust

( PVX),

Penn West



Advantage Energy Income Fund



Cramer stacked these six stocks against the Primewest takeover, concluding that Baytex has the largest upside at 47% from its current quote.

The Abu Dhabi deal means that Arab companies are betting that natural gas is undervalued, and Cramer assured viewers that there will be many more acquisitions in the Canadian energy trust space.

Genesis Lease CEO Speaks

Cramer welcomed John McMahon, CEO of

Genesis Lease

( GLS), back to the show, asking what it means to investors that Genesis bought planes after the markets closed today. McMahon replied that the expenditure of $380 million in additional aircraft increases Genesis' base rental by 30%. He said that analysts should raise their prices and that the stock's dividend "just got a lot safer."

Cramer recommended Genesis at $23 a share.

'Sudden Death'

During his "Sudden Death" segment, Cramer was bullish on

Life Partners Holdings

(LPHI) - Get Free Report



(DHR) - Get Free Report


'Am I Diversified?'

In his "Am I Diversified" round, Cramer's first caller asked if he was diversified with the five following stocks:


(MO) - Get Free Report



(LH) - Get Free Report


Exxon Mobil

(XOM) - Get Free Report



(HOLX) - Get Free Report



(NBR) - Get Free Report


Cramer said that Nabors overlaps with Exxon: "I cannot bless this." He recommended that the caller part with Laboratory Holdings and Nabors and pick up a defense stock and a diversified industrial, perhaps


(CAT) - Get Free Report

, which he owns for his charitable trust,

Action Alerts PLUS.

Cramer's next caller asked about

NYSE Euronext



Chicago Bridge and Iron




(AAPL) - Get Free Report


B/E Aerospace



Level 3



Cramer said that NYSE, which he has in his charitable trust, is the worst-performing stock of the best-run company he knows. He recommended the caller get rid of NYSE.

Cramer's third caller asked about

Bank of America

(BAC) - Get Free Report


Southern Copper

( PCU), Pfizer

(PFE) - Get Free Report


Enterprise Products Partners

(EPD) - Get Free Report


Eagle Bulk Shipping

(EGLE) - Get Free Report


Cramer instructed the caller to "get out of Pfizer," but that otherwise the portfolio was well diversified.

Lightning Round

Cramer was bullish on

Excel Maritime



Companhia Vale do Rio Doce

(RIO) - Get Free Report


Range Resources

(RRC) - Get Free Report


Quicksilver Resources



Rosetta Resources

(ROSE) - Get Free Report


XTO Energy

( XTO) and


(CELG) - Get Free Report


Cramer was bearish on


(NVT) - Get Free Report



(GRMN) - Get Free Report


Urban Outfitters

(URBN) - Get Free Report


Western Union

(WU) - Get Free Report



( NSTK),


(C) - Get Free Report





Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by

clicking here


For more of Cramer's insights during the Lightning Round, click here


At the time of publication, Cramer was long Caterpillar, NYSE Euronext, Sears Holdings and XTO Energy.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for, Inc., and CNBC, and a director and co-founder of All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or is related to the specific opinions expressed by him on "Mad Money."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.