RealMoney Radio: Not Quite, Qualcomm

The first "RealMoney" radio show caller asked about Qualcomm (QCOM Quote), which Jim Cramer owns for his charitable trust Action Alerts PLUS.

Cramer advised the caller to respect what the market was trying to say. Here, it's saying that Qualcomm is not finished going down. Wait until it goes two points lower to buy, Cramer said.

Cramer told his next caller to wait before buying railcar company Westinghouse Air Brake Technologies(WAB Quote). It is in the midst of transitioning from a momentum stock to a value stock, he said. Right now, Cramer said, it did not have a risk/reward ratio he cared for.

Instead, he recommended Norfolk Southern (NSC Quote) to the caller. It has a better and clearer path to go higher, he said.

Cramer told a caller to be careful about Oregon Steel Mills (OS Quote), saying that although it was one of the hottest stocks at the beginning of the year, right now it does not have a good risk/reward.

When the next caller asked about Coca-Cola (KO Quote), Cramer said that although Bear Stearns upgraded the company, he believes Pepsi(PEP Quote) is a better stock.

Even though Pepsi is more expensive than Coca-Cola, Pepsi has performed better, and it has better growth, Cramer said. He recommended the caller swap out of Coca-Cola and into Pepsi.

Cramer advised a caller to pick at Schlumberger(SLB Quote), since right now the stock is in virtual freefall.

"I would buy 50 out of 200 shares right now and wait to buy 50 more shares as it drifts down, and then I would buy 100 shares," Cramer said.

Cramer preferred Consolidated Edison(ED Quote) to Public Service Enterprise Group(PEG Quote).

And he recommended Qwest Communications(Q Quote) to a caller over Level 3 Communications(LVLT Quote). Level 3 needs to stop making acquisitions, they are killing their shareholders, he said.

Cramer said Starbucks(SBUX Quote) and Whole Foods Market(WFMI Quote) are his two favorite growth stocks.

And he told a caller to wait on purchasing Peabody Energy (BTU Quote).

To see the most recent edition of The RealMoney Radio Recap in its entirety, please click here. This recap is published every day around 3 p.m. ET.