RealMoney Radio Recap: Battleground Stocks

Cramer says the bulls are fighting the bears on Hansen Natural.
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NutriSystem

(NTRI) - Get Report

,

Hansen Natural

(HANS)

and

Crocs

(CROX) - Get Report

are three "battleground stocks," where the bears and bulls are fighting it out, Jim Cramer said on his

"RealMoney" radio show Tuesday.

These stocks are either going to be "crushed" or they will "skyrocket," he said.

"When most people buy a stock, their natural inclination is for it to go up in value so they can sell it and make money," Cramer said.

But a group exists that bets against stocks and hope for a stock to go down, he said. These people are called short-sellers.

Although Cramer said he is not a champion of short-sellers, he knows they are out there, particularly in NutriSystem, Hansen and Crocs.

"These all have incredibly high short positions" from people that believe these stocks are going to be crushed, he said.

There are lots of things to like about NutriSystem, but the stock could be "faddish," and it could be possible that one day it will "brutally decline," Cramer said.

"The bitterness from the two sides is too deep for my taste," he said. "Avoid the NutriSystem battleground."

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In regard to Hansen, the energy-drink market is "hot," but it also has a fad component, Cramer said.

As the stock has been up, he said he would be inclined to take some Hansen off the table before it reports next week, even if he likes it very much.

What bears don't realize with Crocs is that it has developed "strong allegiances" at the college level, Cramer went on to say. But as this stock has also gone up significantly since it went public, he said again, his instinct would be to ring the register on some shares.

However, "the bears are going to be the most wrong with Crocs," Cramer said.

Follow the Oracle

There are some people in the market who market players should listen to, he said. One such person is Warren Buffett, "whose ability to make money is legendary" and who owns

Berkshire Hathaway

(BRKA)

, he said.

If people had bought one Berkshire Hathaway $200 share in 1981, they'd now have $100,000 for that one share, Cramer said.

Buffett likes to buy things out of favor and is now looking at retail and buying shares of

Target

(TGT) - Get Report

, one of Cramer's favorite retailers, along with

J.C. Penney

(JCP) - Get Report

and

Sears

(SHLD)

, which he owns for his charitable trust,

Action Alerts PLUS.

Buffett is "making a statement by buying Target and not

Wal-Mart

(WMT) - Get Report

, and Cramer said he's encouraged that the move in retail is not over.

MetLife Meditation

"

MetLife

(MET) - Get Report

is a terrific company, and I am going to overlook that it has some problems with its annuities business," Cramer told his first caller.

He said he's sticking with the stock, as he regards "the pullback as a buyable one, not a sellable one."

Cheesecake Factory

(CAKE) - Get Report

has not been performing too well the last few months, and people are getting "freaked out," Cramer told another caller.

However, "the negativity on Cheesecake is too great," he said.

Although Cramer doesn't have conviction that the company, which reports in 20 days, will do well this quarter, he does have conviction that it will do well long-term.

"I don't want to walk away from it," he said.

When a caller inquired about

Hasbro

(HAS) - Get Report

, Cramer said there should be more upside with this stock.

Both it and

Mattel

(MAT) - Get Report

are going up, he said.

The fact that

Sonoco Products

(SON) - Get Report

makes a proprietary product for its clients, has a 3% yield and is a "quiet grower," bodes well for the company, Cramer said.

It has no negativity and is a good stock to own, he added.

Responding to another caller, Cramer said he has disliked

Coventry Health Care

(CVH)

for some time, saying the company is not very well run.

In this sector, he said he has liked

UnitedHealth

(UNH) - Get Report

, which he owns for his charitable trust,

Action Alerts PLUS, but even this stock has been a "heartbreaker" as of late.

Cramer advised the caller to "steer clear" of this industry until after the election next week.

Bad News

As newspaper circulation figures recently experienced a 2% drop -- and should go down from here -- it doesn't make any sense why anyone wants to own newspapers right now, Cramer said.

Cramer said when he started

TheStreet.com

, he did so because he had always wanted to own a newspaper.

"But I was not going to brave print and distribution costs that made owning a paper way too expensive," he said, which is why he started the online paper.

People should not buy the

Los Angeles Times

,

Boston Globe

and

Philadelphia Inquirer

, Cramer emphasized. "The apparatus for a paper could kill even the richest people."

"Young people don't care about papers," he continued. "They would rather have a paper on the Web."

"Stay away" from newspapers, Cramer warned, "and don't contemplate buying them."

For market players who have a long-term view and possess the patience to see a stock grow for four or five years, Cramer advised buying the

NYSE

(NYX)

.

"There is a very important change going on here, the changeover to a hybrid system," he said.

The changeover has been going on for a few months and is now going into "high gear," Cramer said. Now that the market is getting better, people should consider NYSE as a play, he said.

At the time of publication, Cramer was long Sears and UnitedHealth.

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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clicking here.

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