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'RealMoney' Radio Recap: Avoiding the Oil Slick

"Take advantage of this nice rally we are having in oil stocks to lighten up," said James Cramer Tuesday on his "RealMoney" radio show .

Cramer isn't abandoning oil and energy stocks. But he wants to use rallies to trim, so he can buy the stocks back at lower prices.

You have to trade around the oil stocks now, he said. Buying and holding oil them has become too risky -- not because of the fundamentals of oil supply and demand - those haven't changed -- but because of the shareholder base. Oil stocks are now too heavily owned by investors using margin and by momentum players, said Cramer.

It's just too difficult to own a gigantic position in oil right now, he said. You could get crushed before you get rich.

Cramer's "Danger Zone" stock of the week is Cabela's (CAB). Cramer recently sold Cabela's for his ActionAlertsPLUS portfolio because the company is being hurt by high gasoline prices. The company's stores tend to be 50 to 100 miles from population centers, said Cramer. Additionally, hunting and fishing activities also tend to require a lot of driving, he said. Cabela's stock is "going still lower."

Commenting on Lucent (LU), Cramer said the stock had been dragged down by selling in Verizon (VZ), SBC Communications (SBC) and BellSouth (BLS). But Lucent is more levered to spending at Verizon Wireless, Cingular and the European market, said Cramer, and he believes Lucent is still a good buy.

Cramer's favorite semiconductor stocks are Qualcomm (QCOM), Broadcom (BRCM) and Texas Instruments (TXN). Qualcomm is the most undervalued of the three relative to its potential growth, he said. Cramer believes Broadcom can still go higher even though it has had a big run. The pullback in Texas Instrument's stock is a terrific opportunity and should be bought under $30, he said. Texas Instruments traded at $29.74 late Tuesday.

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