Two companies that are best positioned to take advantage of the Permian Basin are Pioneer Natural Resources (PXD) and Concho Resources (CXO). Concho is particularly interesting because it is undervalued and will go higher, he said.
Turning to gold miners, Cramer thinks a deal between Barrick Gold (ABX) and Newmont Mining (NEM) will get done. In fact, he said, the merger between the two miners will be the first of many consolidations in the sector.
Gold prices continue to stagnate while miners' costs are still too high. Therefore, merging several gold miners makes sense, he argued, so investors should buy the stocks involved in the deals.
So far, investors seem to be ignoring the potential deals in the gold mining space -- particularly between NEM and ABX -- but Cramer attributed this to the fact that gold prices haven't gone up.
-- Written by Bret Kenwell in Petoskey, Mich.