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Investors reading about the horrors of a possible steel glut should realize there are two types of steel stocks, Jim Cramer said Thursday on


Stop Trading! segment.

A UBS report, warning of flat prices, ignores the fact that commodity steel stocks, like

U.S. Steel

(X) - Get United States Steel Corporation Report

, typically bear the brunt of gluts, Cramer said. He said investors should instead own shares in well-run specialty steel makers like


(RS) - Get Reliance Steel & Aluminum Co. Report



( OS) and


(ATI) - Get Allegheny Technologies Incorporated Report


In contrast to the glut talk, Cramer said, demand for structural steel is up 9%. "Reliant just said business is great," he said. "

TheStreet Recommends


(NUE) - Get Nucor Corporation Report

just did a special dividend."

Cramer added that "selling those stocks makes no sense to me," noting that some specialty steel plays are trading at a cheap five or six times earnings. "Sell letter X, that's fine," he said, referring to U.S. Steel. "But don't sell the others."

Cramer also reiterated his bullish take on


(MO) - Get Altria Group Inc Report

, saying it's going to 100 from a recent 77 in large part because of the turnaround led by


( KFT) CEO Irene Rosenfeld. "She is the best in the business," he said.

At the time of publication, Cramer was long Altria.

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