Jim Cramer brushed aside real-estate investing hype Monday on his

"RealMoney" radio show.

"The great home bubble ain't a bubble. It's a market, and the market's soft," Cramer said. Cramer said the second-home market in particular is being hit by a triple whammy of rising oil and gas prices, rising raw materials costs and rising interest rates.

So where to invest? Cramer believes oil and gas may be the only winners with a few exceptions. "It's still not too late to own oil and gas" if you haven't made a move, said Cramer.

Two other plays Cramer believes will work are "beat up" brokerages that cater to individual investors:

Merrill Lynch

( MER) and

Charles Schwab

( SCH).

TheStreet.com

contributor Len Dykstra joined Cramer by telephone to discuss his favorite stock picks. Dykstra highlighted

GFI Group

(GFIG)

,

Watson Wyatt

( WW) and

Walgreen

(WAG)

. Cramer said he is a fan of Walgreen, was intrigued by GFI Group as a possible "antidote to crisis" due to its derivative trading products. Cramer said although he didn't "have a line on" Watson Wyatt, the stock "sounded good" as the company has solid fundamentals and could be a takeover target.

A caller asked whether

Providian Financial

( PVN) might receive a takeover offer in addition to the one it is moving forward with from

Washington Mutual

(WM) - Get Report

. Cramer said, "I don't think there'll be another bid. ... They're lucky to get that price," he said.

About

Motorola

( MOT) and

Texas Instruments

(TXN) - Get Report

, Cramer said Motorola has had a big run and perhaps he should take some profits. But he doesn't believe cell phones will slow down, and he needs tech exposure in his portfolio. As for Texas Instruments, it's a "little more iffy" than MOT, he said, adding that with oil and gas going back up, he is worried about Texas Instruments as a play on big screen TV sales.

In response to a question about

Montpelier Re

(MRH)

, Cramer said he believes the stock is being sold by people who bought it at $24 in Montpelier's recent stock offering. If the stock falls to $25,it would be a "gift," Cramer said, and he would buy it. Montpelier Re traded at $25.97 late Monday afternoon.

A caller asked about

Hoku Scientific

( HOKU). Cramer said some people believed the stock was overvalued at $6 when he first recommended it, and he feels it is "overvalued at $12." But, there are "certain points in the life of a stock where valuation doesn't matter," he said. Cramer feels Hoku is in the "sweet spot" of the market's fancy right now, and he doesn't see a catalyst for the stock coming down.

For a safer play on more fuel efficient cars, Cramer would recommend

Toyota Motor

(TM) - Get Report

.

Another caller asked about

Lucent

( LU). Cramer said he is sticking by his Lucent recommendation because of the company's strong position in wireless and the company's hefty cash position. If Lucent can figure out how to stem the weakness in its wireline business, he sees "$1.50 up and 25 cents down." Lucent traded at $3.02 late Monday.

Finally, in response to a question about

St. Joe

(JOE) - Get Report

, Cramer said the stock is up against the "phantoms and negative psychosis" of negative sentiment toward housing stocks and fear of hurricanes. "Use wide scales and wait for it to go lower," said Cramer.

At the time of publication, Cramer was long Lucent, Motorola and St. Joe.

James J. 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. 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."