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NEW YORK ( TheStreet) -- "Call me a skeptic but not a pessimist," Jim Cramer said on Mad Money Monday. Cramer said there's still too many good things happening in the markets not to be a buyer into weakness, and the downsides can be managed.
Clearly, the markets are fretting over the continued decline in oil prices. Cramer reminded viewers there are only 16 states that are energy producers while the remaining 34 states are users of energy and benefit from lower oil prices.
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The markets are hitting the railroad stocks hard, with Norfolk Southern (NSC) sliding 5% on the day, but Cramer noted that oil makes up only 3% of railroad cargo. Then there are the industrials such as General Electric (GE) , down 1.7%. Cramer said that selloff may also be overdone to the downside.
While it's true some oil drillers did get it wrong when it comes to the price of oil and deserve to head lower, Cramer said the vast majority are run well and can still make money with $40-a-barrel oil. As for the rest of the economy, cheaper gasoline equates to a tax cut that benefits restaurants, retailers and a host of other sectors.
So where does Cramer's skepticism come from? He said the markets still have yet to price in the effects of lower oil on countries like Russia and Nigeria. If the tiny country of Cyprus could send the markets reeling, problems in these larger countries could be worrisome. In the case of Venezuela, Cramer said a revolution would be a good thing as no government there could possible be as bad as the one currently in place.
But with Europe and China having no coherent plans for recovery, Cramer said he's sticking with domestically focused stocks like health care and biotechs along with travel and leisure names.
Executive Decision: Gary Evans
For his "Executive Decision" segment, Cramer sat down with Gary Evans, chairman and CEO of Magnum Hunter (MHR) , the oil and gas driller that's seen its shares fall 45% so far this year as the price of crude has deteriorated.
Evans said the bloodbath for the oil stocks is affecting everyone, whether they drill for oil or natural gas. "All companies are being treated the same," regardless of how well they're being run, he continued.
In the case of Magnum, the company has been selling off is Bakken assets to focus solely on the Marcellus and Utica shale regions where they're "in the heart" of the fields with extremely low finding costs. Evans noted the Bakken assets sold for $700 million are now worth only $200 million, so clearly Magnum made the right move to the right places.
How low can oil prices go? Evans said OPEC's decision seems more aimed at Russia and Iran than the U.S., but Magnum Hunter is planning for lower prices to stick around for another 12 to 18 months. Fortunately, the company still makes money, even at these lower prices, Evans said.
Cramer said Evans has never dodged a tough question about his company or the industry.