NEW YORK ( TheStreet) -- "There isn't always a clear cut explanation for the market's moves," Jim Cramer told the viewers of his "Mad Money" TV show Wednesday as he analyzed the day's trading action. But he said investors can use the pullback to their advantage and do some buying. Cramer said he scoured the markets all day looking for an explanation for today's malaise. His conclusion? There was no good explanation. Stocks ran up to far, too fast, but the underlying bullish trends remain intact, he said. Cramer said the banking sector has been reporting good earnings by and large, yet their stocks sank today anyway. In the tech sector, IBM ( IBM) had good things to say, but that too didn't help the group as a whole. Other sectors, like the oils, coals and even the autos were also on the downside today, despite their long term bullish theses still being valid. So what's an investor to do? Cramer said the disappointing results from F5 Networks ( FFIV) after the bell will likely cause more pain tomorrow in the tech group, and he'd use that weakness to do some buying. He said investors should stick with companies that have long term bullish trends, like Apple ( AAPL) or JPMorgan Chase ( JPM), two stocks which he owns for his charitable trust,
Gold CurrencyIn the "Executive Decision" segment, Cramer spoke with Aaron Regent, president and CEO of Barrick Gold ( ABX), another one of Cramer's favorite gold mining stocks. Regent said that in today's economic climate, gold should be viewed as a currency and a unit of monetary measure, not just as a hedge against economic panic. He said that serious commentators around the world are talking more and more about gold in the realm of world monetary affairs. As a class, however, only 3% of global financial assets are currently invested in gold. When asked about how difficult it is to find gold, Regent said that it's getting harder and harder to find the precious metal. He said that even when it is found, it can sometimes take between seven and 10 years to put a mine into operation. Regent noted that the gold industry is fairly small with limited resources, so increasing production is a tougher and tougher task. Turning towards Barrick's performance, Regent said that his company's low cost of production is a reflection of Barrick's high quality deposits. He said Barrick can simply get gold out of the ground cheaper than its competitors. Cramer continued to recommend gold as an asset class and said that Barrick is a world-class operator.
Hidden Value"Find something rare, and you'll find a bull," Cramer told viewers as he continued his "Eye on Energy" series looking for undervalued energy stocks. Tonight he looked into the the major integrated oil companies and his favorite was ConocoPhillips ( COP). Cramer said that Conoco is a turnaround story, in which management is focused on creating value after years of losing its way and diversifying into too many projects. Like Marathon Oil ( MRO), which recently jumped 11% on the news it was splitting into two companies, Cramer said Conoco also has a ton of value hidden within its various components. Cramer explained that Conoco has already begun selling some non-core assets, reducing its exposure to the low-margin refining business from 27% to just 15% of deployed capital. The company is also divesting its share of the Russian-based Lukoil and putting that capital to work elsewhere. Conoco has lots of potential, said Cramer. The company has exposure to the Canadian oil sands as well as several American oil shale fields. Conoco is also focused on stock buybacks and raising its dividend to help bolster its share price. According to recent research, Conoco's parts are worth $79 a share, 17% higher than where the stock trades today. Shifting gears, Cramer said a company like ExxonMobil ( XOM), which is trading at its 52 week high, is not what investors should want. Exxon, he said, offers little growth, and the company's acquisition of XTO ( XTO) may have been ill-timed. Another winner however, is Chevron ( CVX), an integrated oil company that is growing like crazy and has lots of exposure to oil and only a little towards the slumping natural gas market.