RealMoney Radio: Waiting for Wal-Mart

Cramer says lack of ambience is hurting the retailer giant's pull on comsumers.
Publish date:

The phones were busy Thursday on Real Money Radio, with the show's first caller asking why


(WMT) - Get Report

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

Whole Foods




(SBUX) - Get Report


Barnes & Noble

(BKS) - Get Report




. People like the ambience at these places and they're willing to pay for it, he said.

But neither


(TGT) - Get Report

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

Shaw Group


, 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


(FLR) - Get Report



(MDR) - Get Report


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 He contributes daily market commentary for's sites and serves as an adviser to the company's CEO. Outside contributing columnists for and, 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."