RealMoney Radio: Pat on the BAC

Cramer says Bank of America could gain another one-third of market cap.
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Listeners are the life of the

"RealMoney" radio show, and Jim Cramer told his first caller Thursday that he still wants people to buy

Bank of America

(BAC) - Get Report

because the level of confidence that the company shows is "remarkable."

On the one hand, the bank faces a housing bubble that could be pricked and a

Federal Reserve

that wants to keep hiking rates. But on the other hand, it is buying back stock and has great management, he said. And he believes it will go up another one-third, or about 12 points, from where it is now.

Aetna

(AET)

fell 10 points in a day, to $36 from $46, and Cramer said it's because investors are panicking.

The company spent more money in the last quarter to get customers than it has in some time, he said, adding that this could show that the company is not growing organically.

With Aetna down 10 points, he said he would "forget about it," and take a look at

UnitedHealth Group

(UNH) - Get Report

, a stock he owns for his

ActionAlerts PLUS charitable trust.

He told another caller that

Foster Wheeler

(FWLT)

, another

ActionAlerts PLUS stock, is his "absolute favorite infrastructure play."

The company designs, engineers and constructs giant projects like petrochemical plants, pharmaceutical plants and boilers, he said; and infrastructure is on fire because of Chinese demand and the fact that U.S. plants have grown old and out-of-date.

But the stock has declined to $44 from $53 in February, and he said it's because the company and the stock are diverging.

Foster Wheeler has had a bad balance sheet because it had to take down a lot of debt to make asbestos-related payments, Cramer said. It recently called in those bonds and repaid bondholders in stock.

But bond fund charters do not allow these funds to own stock, so these funds are selling Foster Wheeler stock, he said, adding that the stock and the company will not diverge forever.

It's a great company, he said, adding that at this level it's a buy.

He likes

Applied Micro Circuits

(AMCC)

, which makes a small semiconductor that helps channel video to people's homes.

This fiber-to-the-premises is hot right now, he said. A similar company,

MRV Communications

(MRVC)

, reported a magnificent quarter and the stock went up 15% in one day. Cramer said a similar fate could await Applied Micro Circuits.

He agreed with a caller that

Clorox

(CLX) - Get Report

is a stock that does well in good times and bad because it has a healthy consumer products division.

The company makes things like charcoal, cat litter and bleach, products consumers use regardless of the state of the economy, he said.

The stock just hit a 52-week high, and he believes it will slowly track higher. Because he likes a balanced, diversified portfolio, he said he'd recommend Clorox. Cramer added that he has been buying

Procter & Gamble

(PG) - Get Report

for his

ActionAlerts PLUS charitable trust for its exposure to consumer staples.

Even though

Consolidated Edison

(ED) - Get Report

is down 8%, he told a caller that he would do a "'mon back," meaning that he would back up the truck and aggressively buy the stock.

He said that it's probably the best-run utility in the country, the stock is cheap and it has a 5% yield.

Rarely is ConEd down so much from its highs, he added, as people are selling it to go into hot sectors like mining, minerals, steel, oil and oil services plays.

Buy it out of favor, enjoy your 5% yield, and wait for it to go higher, he said.

Cramer said that he likes

Home Depot

(HD) - Get Report

and that its chief executive, Bob Nardelli, is "the shrewdest executive in retail" other than Howard Schultz at

Starbucks

(SBUX) - Get Report

. He added that he believes the stock is as good as

Lowe's

(LOW) - Get Report

.

A caller wanted to know if

Manitowoc

(MTW) - Get Report

plays into Cramer's

earlier discussion of China and its interest-rate hike.

Cramer said that the selloff in Manitowoc does likely have something to do with China's recent rate hike.

He said that the company went up huge yesterday after the company reported, and that now it's pulling back. But this construction equipment maker's business is in high demand, and this is just profit-taking, he added.

Cramer told a final caller that he was not surprised that

Ameritrade

(AMTD) - Get Report

lowered its commission, but that he was surprised that the stock fell on the news. He owns the stock for

ActionAlerts PLUS.

Everyone has always doubted any moves this company has made to capture more market share, he said, and the company said "some not-so-bullish things about the future."

But Cramer said that he is not backing away, and believes that this is a good buying opportunity.

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.

At the time of publication, Crmaer was long TD Ameritrade, Foster Wheeler, Procter & Gamble and UnitedHealth.

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

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