RealMoney Radio Recap: Whole Foods in Pieces

Halloween may have been a few days ago, but there are a couple of "scary and expensive" stocks out there that have been "clocked," Jim Cramer said on his "RealMoney" radio show Friday.

The first one is Whole Foods (WFMI), he said.

"People who own Whole Foods are being killed," Cramer said.

The stock was a favorite for a long time because it had double-digit growth, but this is no longer the case.

The company "just got it wrong," he said. "This is a bad situation and is specific to Whole Foods," not the entire organic-foods industry.

There might be a bounce in Whole Foods on Monday, and people must sell into that bounce, Cramer advised. "It is not too late to sell it."

The other scary stock is Yahoo! (YHOO), which Cramer owns for his charitable trust, Action Alerts PLUS, Cramer said.

Although it was a thought that Yahoo! could be taken over, right now at $26, not many companies can afford to buy this company, he said.

"Whole Foods is no good, and the Yahoo! speculation is not right," Cramer said.

A diverse portfolio can help market players protect themselves from market slides, and the same applies to companies, he said. That is, a company that is diverse in the products it manufactures is more protected against the market compared with one that focuses on a single sector.