'RealMoney' Radio Recap: Surreal Estate

Jim Cramer painted a rosy picture for stocks on his "RealMoney" radio show Monday.

Cramer said there are a number of factors regarding why the stock market is poised to rally, such as a strong dollar, declining oil prices, a tech gadget rally, mutual funds that are getting new money in, hedge funds that are too negative and a stock market that is "not that expensive."

The biggest reason, though, is the relative decline in the appeal of real estate as an investment vs. stocks. Real estate may have outperformed stocks for a number of years, but the tide is turning, said Cramer, and investors are coming back to the market in droves.

The Disciplined Investor

Former Major League Baseball star Lenny Dykstra joined Cramer as he does each Monday. Dykstra was bullish on Frontier Oil (FTO Quote) and Dell (DELL Quote).

Dykstra said Frontier Oil recently announced its most profitable quarter in its history. The stock is about 37% undervalued, he said.

Cramer liked the idea of buying an oil refinery such as Frontier, after the stock sold off recently, saying "we are in deficit mode when it comes to refining."

Cramer said that Dell was "way too low to sell," and that it is "probably right" to buy the stock.

Cramer's Callers

In response to a question about UnitedHealth Group (UNH Quote), Cramer said UnitedHealth is about to close its acquisition of PacifiCare (PHS Quote). UNH is a buy.

Cramer also likes American Express (AXP Quote). He said bad weather and a new bankruptcy law created one-time problems last quarter for American Express. However, if he had to choose, he would rather buy UNH at $60 than American Express at $50.

UNH traded at $60.87, and American Express traded at $50.72 late Monday.

Cramer said Allscripts Healthcare Solutions (MDRX Quote), down $1.50 Monday, is "very right here." He believes that the company's filing of a shelf offering means the company is expanding, and "I want them to grow," said Cramer. He would "unhesitatingly recommend it."