NEW YORK (TheStreet) -- On CNBC's "Cramer's Stop Trading" segment, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, took a look at a possibly "disastrous" situation for the railcar companies, as they unite with large oil firms. 

The two sides want to extend the amount of time needed to retrofit and update the railcars that are used to transport oil across the country, Cramer said. They are looking to extend the necessary timeframe by up to seven years. 

The U.S. government wants the railcars to be updated much sooner, to prevent potentially dangerous accidents from happening. The result would cost the oil firms "a fortune," he explained. 

Be careful, Cramer warned investors, because if this battle gets dragged out, it could weigh on earnings expectations for the railcar companies, like Greenbrier Companies (GBX) - Get Report , Trinity Industries (TRN) - Get Report and American Railcar Industries (ARII) - Get Report


- - Written by Bret Kenwell in Petoskey, Mich.

Follow @BretKenwell

At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.