When Jim Cramer reflected on recent activity in the stock market, it wasn't just bad stocks that made him so nauseated. It was the bad stocks trading as if there is no price that makes them worth owning.
Cramer was shocked at how many stocks seem to be in a similar position to Encana, Genworth and United States Steel Corp (US Steel). "Stocks that, if you didn't know any better, can't make it in their current forms and will have to reorganize in some fashion," the "Mad Money" host said.
Encana recently made a gutsy move when it slashed its dividend by 79 percent and sold a large amount of non-core assets. While that did allow the company to raise and save cash for continued drilling, it still has a mountain of debt — including $7 billion in long-term borrowing.
"Most stocks do not recover from going down to $5. I think this one can't either," Cramer said.