Radio Shares Will Stay Earthbound

Some week for terrestrial radio. First Cumulus (CMLS - commentary - Cramer's Take) is told that its bid is way too low for Disney (DIS - commentary - Cramer's Take), which is just a pile of hooey because who really wants the Disney properties, anyway? Then the head of Westwood One (WON - commentary - Cramer's Take) gets canned. And now the stalwart grower in radio, Entercom (ETM - commentary - Cramer's Take), cuts guidance on the same day that Citigroup rates Sirius (SIRI - commentary - Cramer's Take) and XM (XMSR - commentary - Cramer's Take) as buys!

I gave a speech earlier this week at Radio Ink's Forecast '06 event, and said it was still too early to buy the radio stocks, which are still selling at multiples to something besides real earnings in a market where all we want is real earnings.

Today will be an interesting test of the thesis. Will the radio stocks be like Toll (TOL - commentary - Cramer's Take), which rallied on a guidance cut, or will they keep going down?

My bet is that they'll do nothing, just as they have done for some time, because nobody cares. And nobody will care until these companies regain some sort of earnings momentum, which they most definitely do not have.

Too bad. Nice guys!

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James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for ActionAlertsPLUS. Listen to Cramer's RealMoney Radio show on your computer; just click here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click here to get his second book, "You Got Screwed!" and click here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by clicking here.