Editor's note: The following are questions received from listeners of "RealMoney Radio." To send Cramer a question about topics from his radio show, click here. Listen to Cramer's latest radio show by clicking here.

What did you mean when you said Valero (VLO) - Get Report was trading at "six times next year's earnings"?-- Sunny

Jim Cramer

: When I said Valero was trading at six times earnings, I was simply saying that the stock was trading at a price-to-earnings ratio of six when using next year's consensus analyst earnings estimate to make the calculation.

Why are the P/E ratios on Goldman Sachs (GS) - Get Report and Bear Stearns (BSC) so low?-- Erik

Jim Cramer

: The P/Es on these stocks are so low because most investors believe that the brokerage cycle is peaking, a notion I disagree with. The fixed-income trading environment remains very strong, M&A activity is on fire, and hedge fund/private equity/LBO activity is extremely healthy. I believe both stocks will go up from here, and I actually own Goldman Sachs for my charitable trust,

Action Alerts PLUS.

Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by

clicking here


At the time of publication, Cramer was long Goldman Sachs.

Jim 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. 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." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by

clicking here.

TheStreet.com has a revenue-sharing relationship with Traders' Library under which it receives a portion of the revenue from Traders' Library purchases by customers directed there from TheStreet.com.