No matter who we want to blame about high oil prices, the takeaway is clear, said Jim Cramer on his
"RealMoney" radio show Monday. Ethanol is the short-term way out of our fuel price jam.
Whether auto companies ever actually make more fuel-efficient vehicles or oil companies invest in alternative energy, oil prices will continue to go higher, Cramer said.
Some analysts say that crude prices could hit $100 a barrel, and Cramer agreed with that assessment, adding that there is evidence that it will be three to five years before any progress is made to bring prices down.
The Wall Street Journal
says that the price of $3 a gallon hasn't changed our gas-guzzling ways, and Cramer said that if this is true, it will be a bit longer before the cry for ethanol reaches a fever pitch.
reporting a 6.8% increase in same-store sales, he added that there is evidence that $3-a-gallon gasoline is not slowing down consumer spending.
But once gasoline prices hit $3.50 or $4, "then we'll hear an even louder call for ethanol," he said. And the play here is to own
Archer Daniels Midland
before this happens.
ADM's focus is on processing and merchandising agricultural products, which includes turning corn into ethanol, he said. But the stock is up huge right now.
Just as with
, profit-takers will come in after the company reports its earnings and send the price down, Cramer said.
He recommended buying the stock only after the company reports earnings and the price falls.
Cramer also recommended that listeners look into
, a supplier of products and services for the aviation, aerospace and defense industries.
He pointed out that
has agreed to pay $1.7 billion for the parts company
because one of its fastest-growing revenue sources is selling spare parts.
He believes that AAR could be next in line, so he said to lock in the big gains made in Aviall and to plow the money into AAR.
To see the most recent edition of The RealMoney Radio Recap in its entirety, please click here. This recap is published every day around 3 p.m. ET.
James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, 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
Action Alerts PLUS. While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by
clicking here. Listen to Cramer's RealMoney Radio show on your computer; just click
here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click
here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click
here to get his second book, "You Got Screwed!" and click
here to order Cramer's autobiography, "Confessions of a Street Addict."