NEW YORK ( TheStreet) -- "The best thing you can say about this market is that we weren't down more," a solemn Jim Cramer told the viewers of his "Mad Money" TV show Monday, after a 635-point slide in the Dow Jones Industrial Average. He said the downgrade of U.S. debt was like hitting the markets with a big stick, but the day's trading action was curious, to say the least. Cramer concluded that today's market action was akin to a slow-motion flash crash, one where the machines, not men, were at the helm. How did he reach that conclusion? Cramer said it's because the market acknowledged no positives and instead took everything lower, which is not rational investing. "When everything gets crushed, that's machines, not man," he concluded. Cramer noted that utilities should have been up today, with energy prices falling off a cliff, but they weren't. Consumer products companies, the safety stocks of the markets, should have been up today as well, but they weren't either. Gold stocks should've seen gains, he said, but there again was nothing but red ink. Take the case of Johnson & Johnson ( JNJ). Cramer said this company was down 2.5% today, yet the company yields 3.7%, which is far better than the 2.25% from a 10-year Treasury bond. Despite the company's recent slew of over-the-counter drug recalls, Cramer said he'd be a buyer of J&J once its yield hits 4%. The company trades at just 12 times earnings with a 5% growth rate. Cramer also looked into Eaton ( ETN), a stock he's liked for a long time. He said that Eaton also has a big yield, but unlike J&J, Eaton's earnings fell off a cliff in the recession of 2009, something the stock is getting punished for now. Cramer said he'd wait for a 4%-to-5% yield in Eaton as a cushion to make up for the more unpredictable earnings. "Things aren't as bad as 2008," Cramer reiterated to viewers, but that doesn't mean we can't immunize ourselves from risk by waiting for even lower prices, even in companies that are safer than U.S. government bonds.
Dividend StrengthIn the "Executive Decision" segment, Cramer once again sat down with Herbjorn Hansson, chairman and CEO of Nordic American Tanker ( NAT), a company that now yields a hefty 7.2% dividend that some believe may now be in jeopardy with a slowing global economy. Hansson said that reports citing that his company has cut its dividend are totally wrong, and Nordic American continues to pay its normal dividend, just as it has for the last 56 quarters. He said his company has a strong balance sheet and the recent reports have totally misguided the markets in the wrong direction. Hansson did admit however that Nordic American did take on additional debt in part to pay its dividend. He said that while debt is bad, the company is still in a strong position and is committed to rewarding its shareholders, even in the bad times. When asked about the tanker market in general, Hansson said that business continues to troll along the bottom, but he expects rivals to go out of business soon, allowing Nordic American to buy some additional ships on the cheap. He said "we're nice people, but still tough businessmen." Finally when asked about the prospects for a turnaround, Hansson noted that things could turn around quickly for the tanker business. He said that if China, for example, were to import just one million more barrels of oil a day, that alone would translate into a 10% increase in the demand for ships. Cramer said he continues to have confidence in Nordic American Tanker and the company remains the only tanker company he recommends.
Playing Catch UpIn a second "Executive Decision" segment, Cramer also spoke with Chuck Jeannes, CEO of Goldcorp ( GG), on a day where gold reached another all-time high, but shares of Goldcorp floundered after the company reported a one-cent-a-share earnings miss on light revenue. Jeannes said that Goldcorp's problems with the quarter, which included fires, floods, but fortunately not locusts, were all short-term in nature. He said all of the issues were behind the company, or soon will be, and he remains confident in the long-term profile of the company. Jeannes said he remains frustrated at the short-term focus of the markets, which demands results immediately, and has no regard for the long-term prospects of Goldcorp or gold miners in general. Regarding issues at the company's prominent mine in Mexico, Jeannes explained that the rock being extracted didn't break as expected and was causing issues at the mill. That, however, says nothing of the quality, recovery or production of the ore at that mine, which continues to exceed expectations. Jeannes noted that a fix for the mill has already been developed and will be in place before the end of the year. He also noted that the mine is only in its third quarter of what is expected to be a 90 quarter lifespan. Finally, when asked about the company's dividend, Jeannes said Goldcorp continues to generate excess cash flow and will continue to expand its operations and exploration as well as continuing to increase its dividend as is possible. Cramer said Goldcorp remains his favorite gold mining stock and the company should play catch-up to its peers soon.