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.

More from Opinion

The Good, the Bad, and the Unknowns of AI and Apple Watches

The Good, the Bad, and the Unknowns of AI and Apple Watches

Flashback Friday: Bye Bye FAANG

Flashback Friday: Bye Bye FAANG

Micron Slumps After Issuing Light Guidance: 7 Key Takeaways

Micron Slumps After Issuing Light Guidance: 7 Key Takeaways

Throwback Thursday: Let's Talk Tilray

Throwback Thursday: Let's Talk Tilray

Amazon's Reported Plans to Greatly Expand Its Cashier-Free Stores: 5 Takeaways

Amazon's Reported Plans to Greatly Expand Its Cashier-Free Stores: 5 Takeaways