Jim Cramer's 'Stop Trading!': Buy Discovery

Buy Discovery Holding DISCA as an earnings play, Jim Cramer said on CNBC's "Stop Trading!" segment Tuesday.

"Niche, high-end cable is making money," Cramer said. He pointed out that he featured the stock on "Mad Money" for Green Week. He called Discovery a "niche business," that is "very difficult to understand." He said he liked that the company's advertising revenue has held up nicely.

Cramer was less bullish on CBS CBS. He said that the company's radio segment is "in just some sort of spiral downward." He said the company might do well to buy a cable channel. "Dividend boosts have not worked," he said. "We want to see growth. ... CBS feels like a wasting asset to me."

Cramer took a moment to discuss a New York Times piece on World Wrestling Entertainment WWE. Cramer said the piece claimed the McMahon family, which controls the company, offered a dividend boost to themselves. He said the assertion was incorrect, and pointed out that WWE is another example of "niched cable that is making so much money."

In food, Cramer praised Tyson TSN for yesterday's conference call. He urged viewers to read the company's comments about ethanol policy, which are "right from the heart," he said. "It's a remarkable conference call. ... The truth is so stark on ethanol."