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NEW YORK (TheStreet) -- When the market falls over 4%, as it did Monday, Jim Cramer tries to look at the bright side, he told his Mad Money viewers. That means taking a closer look at three companies that should be bought on the recent dip -- Disney (DIS) , Starbucks (SBUX) and Nike (NKE) .
Cramer said all three have impressive growth and all benefit from falling oil prices because input costs decrease while its customers' dispensable income increases.
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Nike has been "such a fabulous performer" since reporting earnings in September, Cramer said. Earnings climbed 27% and orders surged 14% on the back of strong demand in the U.S. and China. The company continues to innovate, CEO Mark Parker is completely underrated and the brand continues to resonate with consumers.
Starbucks, a holding in Cramer's charitable trust Action Alerts PLUS, is a stock that has languished below $80 per share for almost all of 2014, Now it is finally breaking out. The company's new high margin Reserve concept is innovative and imaginative, and management has great control over its commodity costs, Cramer said.
Finally, Ebola fears have subsided and with them concerns about possibly contracting the disease at Disney theme parks and on cruises. Disney's Frozen franchise, its portfolio of characters from different movies and its ESPN network continue to drive impressive sales.
The bottom line: Investors should use the recent pullback to buy these three high-quality companies. As long as the current management stays put, these stocks should churn out terrific long-term returns, Cramer said.
Executive Decision: Al Monaco
For the “Executive Decision” segment, Cramer met with Al Monaco, the CEO of Enbridge (ENB) . The pipeline company dropped 4.2% on Monday due to falling oil prices.
Monaco said the company does a lot of work with oil sands producers, which have time horizons of 40 to 50 years. For that reason, the short-term fluctuations in oil prices seldom matter. Most of the company’s contracts are with large corporations with incredibly strong balance sheets, he added. Due to the contractual agreements, Enbridge has fairly predictable cash flows.
As a token of its confidence, management recently boosted its dividend by 33% and provided strong guidance for 2015, Monaco said. Still, this is a tough environment for oil producers, he acknowledged. The low oil prices and low interest rates should result as a “huge shot in the arm” for the economy and the industry over the long term, Monaco said.
Cramer feels as though this “toll road” stock is being unjustly sold off because it does not need rising oil prices to become more profitable. Therefore, falling oil prices should not bring the stock down. Instead, it gets paid on the amount of oil shipped through its pipeline network. The recent selloff seems like a buying opportunity, he said.