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RealMoney Radio Recap: Mystical California Pizza

TheStreet.com Staff

Editor's Note: Today's marks the final day of Jim Cramer's RealMoney Radio show and the RealMoney Radio Recap. Jim will now be focusing on initiatives at TheStreet.com, including video work like his daily Market Updates. Be sure to come to TheStreet.com to check them out. And sign up for the Daily Booyah newsletter if you haven't already -- we'll send you an email twice a day with recaps of what Jim's said in his videos and on his Mad Money TV show.

Although profits are a good indicator of how companies have done, there are many ways companies can change the bottom line, so people must look at the company's "top line," Jim Cramer said on his "RealMoney" radio show Friday.

California Pizza Kitchen(CPKI Quote) and Coldwater Creek (CWTR Quote) both "stumbled" last month, he said.

But even though Coldwater is down "a cool six points" since last week, it has a history of "swooning" and then coming back up, Cramer said, adding that he believes those who use this as an opportunity to buy the stock should be happy in the long run.

Meanwhile, California Pizza Kitchen "committed the unpardonable sin of guiding down for the quarter and for the year," which market players never want to hear, he said.

However, Cramer said he believes the reason the company gave for doing this, which is that it has had a difficult time working with small individual contractors that install its restaurants into malls.

"I have no reason to doubt this," he said, especially because the stores that are open are doing "fabulously." As Cramer believes California Pizza Kitchen to be "one of the fast-growing casual dining companies in the country," he said he would not abandon it.

Fools' Frenzy

People tend to get caught up in "pockets of emotional frenzy," which is what is causing the "hideous" selloff today, Cramer said.

And now people are talking about a hard landing, but Cramer said he begs to differ. In fact, he believes "it's pretty amazing here" in the market.

Interest rates are going down, and people are fretting about that, which is "silly," he continued. These low interest rates are making big investors in this country switch out of bonds and into stocks, Cramer said.

"I always want a soft landing because it is better for more stocks than a hard landing, as a soft landing makes it easier to find the bull markets wherever they might be," he said.

"But I'll be darned if I am going to start selling this market because the competition's becoming absurd."

Moreover, Cramer believes that we are going to see "a wave of takeovers" because of the weak dollar. He urged market players to start thinking about the weak dollars as foreigners do.

As foreign companies have begun to think of American companies as being weak and cheap because of the declining dollar, they should start taking them over, Cramer explained. And people who have panicked and gotten out of the market will regret it, he said, as "the best is yet to come."

Joy Global (JOYG Quote), Ingersoll-Rand (IR Quote) are two companies which Cramer believes could get takeover bids.

Although for some parts of the economy the weak dollar may be negative, for takeovers it is positive, he said. Moreover, people should not worry about the weak dollar unless they are traveling abroad because then they will have to pay more.

In Appreciation

After hosting his "RealMoney" radio show for six years and having touched many people's lives, Cramer told his listeners that "it's been a fabulous run, but it's come to an end."

While he will continue to host his "Mad Money" TV show and spend more time at TheStreet.com, Cramer said that he will also spend more time with his family and that it is time for him to move on.

In his closing segment he gave a special thanks to Cheryl Winer, who introduced him to radio, and to Tom Clarke, the CEO of TheStreet.com who supported him throughout his radio stint.

Cramer also thanked CBS Radio Chairman and CEO Joel Hollander, David Hall, Emiliano Limon, Merrill Collins and Grant Kneller.

"These are the people who made this show great," he said. "We've had a pretty remarkable run."

Lastly, Cramer thanked his listeners and reminded them that we are in "a multiyear bull market." He urged people to continue to build their own portfolios and if they ever get in a jam, he told them to email him by going to TheStreet.com and clicking on his byline.

"Hosting radio has been a great joy and I will miss it," he said.

Cramer's Callers

As Fluor (FLR Quote) builds oil projects, it is not "a true industrial company," which is why it's not going down, Cramer told a caller.

"I would not sell it as it is a great play on energy and energy is going higher," he said.

Responding to another caller, Advanced Micro Devices (AMD Quote) is "cheap, cheap, cheap," Cramer said.

Although the company has been subpoenaed, it intends to cooperate with the investigation, he said. "This is important because you don't get in trouble with the government when you cooperate."

Further, a lot of companies are being subpoenaed so it's not as if the government is focusing on Advanced Micro, Cramer went on to say.

"The fact that it's down makes it a buying opportunity," he said. "This one is definitely right."

Cramer told another caller it is time to start looking at Archer-Daniels (ADM Quote) again after it had a "brutal" decline.

"We should begin to nibble at Archer-Daniels," he said. "I'd buy one quarter of the position here and wait for the stock to come down to buy more."

On the other hand, Cramer told a caller he blessed leaving Nokia (NOK Quote) even though the stock is inexpensive. He said he doesn't like the cell-phone business as it is too competitive.

Although there are some analysts who haven't been happy with SAIC (SAI Quote), Cramer said he doesn't consider this stock expensive at all and he would use any weakness to buy it, not sell it.

When a caller asked about Starwood Hotels (HOT Quote), Cramer said he likes this stock very much and believes it is "a very well run company."

But as much as he likes Starwood, he said he likes Hilton Hotels (HLT Quote) more.