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Naysayers show a lack of rigor when they lament that stocks are too expensive, Jim Cramer said Friday on


"Stop Trading!" segment.

Cramer shrugged off discussions of marketwide or index-specific price-to-earnings multiples. He said the key for investors is to seek out companies with strong growth prospects and then check how expensive they are.

"Don't look at it as the market," Cramer counseled. "


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is trading at five times earnings, is that expensive? Steel companies are getting five or six times," he added, referring to the specialty steel plays noted in Thursday's segment.

By contrast, Cramer said, "


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look expensive now." But the "bedrock industrials" and some successful tech names are cheap, given their expanding opportunities, Cramer said.

Cramer said two tech stocks he's bullish on are

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, which he said both trade at 18 times earnings estimates. Cramer said the shares are actually cheaper than that, though, because Microsoft is due to roll out its Vista operating system and Cisco is taking market share from rivals in the cable market. He said investors should stick with Cisco even after its 36% rally in recent months. "We'll feel like dopes if we sold 'em," Cramer said.

Cramer also remains bullish on


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General Motors

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, citing renewed cost-cutting and more vigorous turnaround plans at the money-losing automakers. He believes Ford could go to 12 from a recent 8 and GM to 40 from a recent 33 because deep cutbacks will unleash an earnings surge in the second half of 2008.

"How many people are at these country clubs?" he asked, referring to Ford Motor Credit's plan Thursday to cut 2,000 white-collar jobs. But once management clears the chaff, Cramer said, earnings should make these stocks too look cheap.

At the time of publication, Cramer had no positions in stocks mentioned.

Jim Cramer is a director and co-founder of He contributes daily market commentary for's sites and serves as an adviser to the company's CEO. Outside contributing columnists for and, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for

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