The best bargains are created when the market overreacts, Cramer said Wednesday.
Take oil stocks, for example. As the price of crude has come down, the oil names have been annihilated. The share price declines have far outpaced the actual decline in the price of oil, though. In turn, there are many incredibly cheap oil companies that still have strong growth prospects, including Whiting Petroleum .
Although based in Denver, Whiting is the second largest oil producer in North Dakota's Bakken shale—one of the biggest oil finds in U.S. history. Whiting has 582,000 acres in the oil-rich Bakken and some exposure to other shales, too. Since having reported a disappointing quarter in late July, WLL has fallen through the floor. The day after it reported earnings, it lost 9 percent and has now fallen 38 percent.
"Investors didn't like the fact that Whiting's higher production volumes were coming with higher costs, they were scared by the company's increased capital spending budget and also disappointed by some of the results from its new wells in the Bakken," Cramer said. "But I should also note that Whiting only missed the consensus earnings estimate of $1.03 per share by a penny. The quarter wasn't so bad, it just coincided with a moment when oil started falling in price and the economy faltered."
Cramer thinks this stock has been punished "way too severely." So he wanted to hear from the company itself and welcomed CEO James Volker onto "Mad Money." Watch the video to see the full interview.
Call Cramer: 1-800-743-CNBC
Questions for Cramer?
Questions, comments, suggestions for the Mad Money website? firstname.lastname@example.org