'RealMoney' Radio Recap: Food for Thought

The food stocks are going up, and that doesn't bode well for the economy or the stock market, said Jim Cramer on his "RealMoney" radio show Tuesday.

The last time the food stocks went up in tandem, said Cramer, was the spring of 2000, when the Federal Reserve took interest rates too high and the economy started to fall apart. Cramer told listeners to pay heed to the big sea change as people are selling companies that need a strong economy to do well, like the chemicals, paper, steel, heavy machinery and homebuilding stocks. Meanwhile, they're buying food stocks, which have consistent growth regardless of economic conditions.

The best way to play the food stocks is Altria (MO Quote), said Cramer. He believes Altria can go to $100.

Cramer also likes General Mills (GIS Quote), H.J. Heinz (HNZ Quote), Hormel Foods (HRL Quote), PepsiCo (PEP Quote), Kellogg (K Quote) and Unilever (UN Quote).

Cramer has turned bearish on Comcast (CMCSA Quote), saying the company is facing too much competition. The attractiveness of Comcast and cable companies, Cramer said, had been their monopolies. However, those monopolies continue to be eroded. "If we lose the monopoly, we lose everything," said Cramer.

The latest example, he said, is Verizon (VZ Quote), which is now offering DSL for $14.95 a month. That's too cheap, he said, if you are competing with Verizon. Cramer also said Vonage will become an increasing threat to Comcast for VoIP telephony service.

"If you're in Comcast because of me, I want you to sell it," said Cramer.

In response to a question about StoneMor Partners (STON Quote), Cramer said he would hold onto it, but he needs to "find out why it's so hated."

Commenting on defense stocks, Cramer said he is worried about possible cutbacks in defense spending as a result of the spending for the rebuilding effort from Hurricanes Katrina and Rita.