"For two months now I have been urged, cajoled and beseeched to talk up
, a company that makes copper wire largely for homebuilders," Jim Cramer said on his
"RealMoney" radio show Wednesday.
However, in the time people have tried to push this stock on Cramer, he has seen it go down in a free fall, from $40 to $23. Had he listened to his critics and recommended Encore Wire, Cramer would have hurt many of his listeners.
"My credibility would be gone," he said. "Encore Wire is levered to the worst part of the economy, and it has missed its estimates big-time and has had its earnings estimates for the future slashed."
People know that if Cramer gets behind a stock then he might have the ability to move it up and "create a short-squeeze," but he doesn't "play that game," he said.
Investors know there was a squeeze in
, a stock Cramer likes very much, which had a similar short position. But this was because the company repeatedly beat numbers, "and that's what moves stocks higher," he said.
If market players learn to look at the world with a "critical eye," they will see that there are a lot more people getting fat everywhere, Cramer said. And these people are looking for someone to blame.
Public enemy No. 1 is not fries, but Doritos, he went on to say. Although the government may never mandate that Doritos "be taken off the shelf," Cramer said it is likely that people will stop eating them.
"The growth rate of Frito-Lay is going to slow down," he said. "They are not going to be bought with the reckless abandon they once were."
Therefore, when market players see strength in
, Cramer advised them to sell the stock.
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.
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
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