Jim Cramer -- Cimarex Secondary Offering Could Be Referendum on Oil Stocks

NEW YORK (TheStreet) -- TheStreet's Jim Cramer is watching Cimarex Energy  (XEC).

During CNBC's "Cramer's Stop Trading" segment, Cramer, the co-portfolio manager of Action Alerts PLUS, said the company's secondary offering of six million shares at $109 each will show whether there is the appetite for oil company stocks, he said.

Cimarex is "an excellent company" with oil fields in the mid-continental U.S. "They have Permian. I believe in Permian," he said of the shale-rich Permian Basin.

"I know that's opposite of what (hedge fund investor) David Einhorn says," Cramer said. "Well, just call me skeptical of Einhorn. Don't call me skeptical of Cimarex."

At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.

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