'RealMoney' Radio Recap: Gas in the Tank

If you are underweight oil and natural gas stocks, get ready to buy them next week, James Cramer said on his "RealMoney" radio show Thursday.

Oil and gas stocks are coming down, and Cramer believes most individual investors are still underweight oil and gas. That tells him the move isn't over, he said.

Cramer recommends buying "intermediate" natural gas and oil companies that "can still be nimble enough that a big find means something." His favorites are EnCana (ECA Quote), Cimarex (XEC Quote), Chesapeake Energy (CHK Quote) and XTO Energy (XTO Quote). He also likes drilling supplier National Oilwell Varco (NOV Quote) and would even consider majors like ConocoPhillips (COP Quote) and Chevron (CVX Quote).

Commenting on Sears Holdings (SHLD Quote), Cramer said Sears director Steve Mnuchin bought 265,000 shares of Sears Tuesday and Wednesday on the open market, thus reinforcing Cramer's long-term bullishness on the stock.

In response to a question about KB Home (KBH Quote), Cramer said he would sell KBH, adding that he is bearish on homebuilder stocks in general.

Cramer said he is "sticking by" St. Joe (JOE Quote). He knows the company well, has walked the company's land in Florida and is not in the stock for a trade.

Cramer said he made a mistake recommending Annaly Mortgage Management (NLY Quote), which has fallen to about $13 from roughly $20. Cramer believes the stock is headed for $10, and he would look to buy it there. The company "got thrown through the windshield" by the Federal Reserve's tightening of interest rates, he said.

In his weekly "Stump Cramer" segment, Cramer was intrigued by StoneMor Partners (STON Quote) and Willis Lease Finance (WLFC Quote).

In response to a question about Brazilian stocks, Cramer was bullish, saying Brazil is "the real deal."

A caller asked if the "Cramer Tech Rally" included Zoran (ZRAN Quote). Cramer said Zoran is in the "sweet spot," but he once had a bad experience with the stock when the company announced accounting irregularities. That "burned me too much," he said, adding that he doesn't trust the company.