The phones were busy Thursday on Real Money Radio, with the show's first caller asking why
seems to be treading water.
Jim Cramer said that Wal-Mart is an inexpensive stock when its price is compared with its earnings growth, but that there is a trend happening that people will shop at the places they like, even if they have to pay full price.
This trend is boosting companies like
Barnes & Noble
. People like the ambience at these places and they're willing to pay for it, he said.
nor Wal-Mart can't lure in shoppers on these merits, he said, adding that he wouldn't be bullish here.
A caller said that he had shorted
Research In Motion
on news that the company may face another legal battle.
Cramer said that he also believes the stock will falter as the company loses out to
, but that he tends not to recommend shorting stocks because it is such a risky strategy.
However, he said that he would not buy Research In Motion and that he would sell it if he owned the stock.
Another caller wanted to know why several stocks that have reported amazing quarters fell after they announced the numbers.
Cramer said that a lot of people sold these stocks because they wanted to lock in gains. These stocks had already gone up significantly before reporting their quarters, and so when shareholders got confirmation that things were good, they sold into the news and secured a huge profit.
If you don't sell a little, there will be no room to buy back more of a solid stock when the price comes back down, he added
Cramer said that
missed its quarter by a large amount because it has not yet diversified away from being just a gum maker.
He said that it's a conservatively run business that is trying to grow earnings, and that investors with the patience could make some money here. It will take at least 18 months, he said, before it figures out how to branch out into mints. If you want results in this year, this stock is not for you, he added.
Finally, he told a caller that there was reason to be worried about
, one of the few infrastructure companies that has not risen in line with the sector. The company has "overpromised and underdelivered," he said, adding that he would rather be in
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