'RealMoney' Radio Recap: A Little Night Music

Why do brokerage firms hold meetings at strip clubs, and how can this make you money? Jim Cramer asked "RealMoney" radio show listeners on Thursday.

Cramer said there are two kinds of firms: those that are value-added and attempt to make you money with huge research departments that employ analysts who rate stocks, and those that are just a trading desk.

"It's difficult for those firms to develop client relationships without doing something special," he said. And the firms with no research often take clients to strip clubs.

That's where Cramer said adult entertainment operator Rick's Cabaret International(RICK Quote - Cramer on RICK - Stock Picks) comes into play -- a company that owns "stores" in Houston, Austin and San Antonio, Texas, and Minneapolis, as well as adult Web sites.

Equities Magazine said the stock is its pick for the best performer in 2006, he said, and Cramer also believes that the stock could do well.

Your decision to buy or not buy Rick's depends on your point of view, he said. Powerful Wall Street firms will try to outlaw places like this because they won't want smaller firms to have the unfair advantage of taking clients to a Rick's.

But if you think the forces of "nighttime glamour" will win out, Rick's is for you, Cramer said.

CD sales are down and download purchases are up, in part because of increased MP3 player sales, Cramer said. So if you want to make money off this trend, it's time to start looking at music company stocks, including Warner Music(WMG Quote - Cramer on WMG - Stock Picks).

He said that he was skeptical of the stock when it was spun off from Time Warner(TWX Quote - Cramer on TWX - Stock Picks) because it looked like the music business was fading away. "No one thought there would be such a rush to buy music off the Internet."

But now that the trend has caught on, he also said it's time to sell Trans World Entertainment (TWMC Quote - Cramer on TWMC - Stock Picks), which owns music retailers such as Strawberries. "This stock is not cheap ... because its earnings are falling apart."

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