'RealMoney' Radio Recap: Brokerage Bets

Jim Cramer brushed aside real-estate investing hype Monday on his "RealMoney" radio show.

"The great home bubble ain't a bubble. It's a market, and the market's soft," Cramer said. Cramer said the second-home market in particular is being hit by a triple whammy of rising oil and gas prices, rising raw materials costs and rising interest rates.

So where to invest? Cramer believes oil and gas may be the only winners with a few exceptions. "It's still not too late to own oil and gas" if you haven't made a move, said Cramer.

Two other plays Cramer believes will work are "beat up" brokerages that cater to individual investors: Merrill Lynch (MER Quote) and Charles Schwab (SCH Quote).

TheStreet.com contributor Len Dykstra joined Cramer by telephone to discuss his favorite stock picks. Dykstra highlighted GFI Group (GFIG Quote), Watson Wyatt (WW Quote) and Walgreen (WAG Quote). Cramer said he is a fan of Walgreen, was intrigued by GFI Group as a possible "antidote to crisis" due to its derivative trading products. Cramer said although he didn't "have a line on" Watson Wyatt, the stock "sounded good" as the company has solid fundamentals and could be a takeover target.

A caller asked whether Providian Financial (PVN Quote) might receive a takeover offer in addition to the one it is moving forward with from Washington Mutual (WM Quote). Cramer said, "I don't think there'll be another bid. ... They're lucky to get that price," he said.

About Motorola (MOT Quote) and Texas Instruments (TXN Quote), Cramer said Motorola has had a big run and perhaps he should take some profits. But he doesn't believe cell phones will slow down, and he needs tech exposure in his portfolio. As for Texas Instruments, it's a "little more iffy" than MOT, he said, adding that with oil and gas going back up, he is worried about Texas Instruments as a play on big screen TV sales.