All things oil are hurting, but don't eschew the stocks in the sector.

Oil prices are tumbling, BP ( BP) has reported bad production numbers, and Marathon Oil ( MRO) has been negative, but Jim Cramer said on TheStreet.com TV's Wall Street Confidential video Tuesday that he believes people should buy oil stocks on the way down here.

"Oil has come down a lot and the stocks are pretty much in free fall," he told Aaron Task, the host of Wall Street Confidential. "I like to buy a stock in freefall if you have some underpinnings."

Recently, General Electric ( GE) bought an oil service company, which Cramer believes is "big" for the company, and it sold its plastics division, which was a giant consumer of energy.

When a company like GE decides the oil group is selling cheaply, Cramer said he believes people are throwing away these companies because they can't take the pain. However, he said he wouldn't cut and run here.

In fact, Cramer said he just bought some Transocean ( RIG) shares for his charitable trust, Action Alerts PLUS . He stressed that people should view oil stocks as investments, not trades.

When Cramer sees a group in free fall, he takes a look to see how low a stock like Halliburton ( HAL), which he also owns, can go. It could go to $23 or $24, Cramer said, which is where he would double up his position. Halliburton was recently trading around $28.

People "have to take a stand" and look at which companies have long-term contracts, which is why Cramer said he likes RIG, and which ones could be bought by BP, which is why he likes Devon Energy ( DVN). Moreover, people should watch out for which ones are currently being thrown away because of lame refining margins or negativity, which you're seeing in a stock like ConocoPhillips ( COP), Cramer said.

"People should understand that there can be value-creation when you have a multiple as low as a lot of the oil stocks are," he said. "These are companies with gigantic cash flow that can do a lot of things, but can't do them overnight."

Another reason people find oil and energy "so fascinating" is because of the geopolitical aspects involved, Task added. When he mentioned how Hugo Chavez's plan for possibly nationalizing more of Venezuela's economy could be an issue for BP and ConocoPhillips, Cramer said, "Right now we're in a mode where no matter what happens, it seems it's viewed as negative for oil pricing."

The situation in Venezuela and the fact that BP's production is down are all "signs of things that are longer term," Cramer continued. And rather than focusing on long term, the market wants to focus on what's going on right now.

Task asked whether Venezuela taking itself off the grid has ramifications for emerging-market stocks in South America and Latin America, to which Cramer replied, "It has to."

He urged investors to take gains in Latin American stocks every time they have one, whether it be with a stock like American Movil ( AMX) or AES ( AES).

Discussing Apple ( AAPL), Cramer said an Apple bear has been coming into the market and knocking it down every day. He told viewers it is "always a mistake" buying Apple up $1.50. There is a lot of leaning going on by hedge funds on the market, on the futures and on individual stocks, and both Google ( GOOG) and Apple are being targeted, Cramer explained.

"Wait for them to overshoot and then buy," he advised.

When Task asked if there is risk that expectations are too high for Apple's iPhone, Cramer said Apple should be given credit for the fact that "its execution is masterful."

"Its upside comes from its own realization that its brands are great," he said. Cramer said he's never scared about expectations getting too high with Apple.

At the same timem he believes "it never pays" to buy Apple when it is up because the "bears are leaning all over it," and eventually he expects the stock will come down on rumors.
At the time of publication, Cramer was long Transocean and Halliburton.

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS. Listen to Cramer's RealMoney Radio show on your computer; just click here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click here to get his second book, "You Got Screwed!" and click here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by clicking here.

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