"One set of stocks I perpetually get asked about is
Sirius Satellite Radio
XM Satellite Radio
( XMSR)," Jim Cramer said on his
"RealMoney" radio show Thursday.
Sirius has become one of his top three favorite speculative stocks. It has joined the ranks of
Level 3 Communications
, Cramer's other favorite speculations.
has a $17 billion market cap, and yet it has no growth, Cramer said.
"On Wall Street we care more about growth than assets," he said. "On Wall Street we want the kind of company Mel Karmazin has with Sirius."
In a high-growth company, what Cramer looks for is free cash flow. For its fourth quarter and many more quarters, Cramer believes that Sirius will have positive free cash flow.
In addition, the acquisition costs are coming down at Sirius, and "it could have hundreds of thousands in advertising revenue in the next few years" and more subscribers, Cramer said.
"If you're in XM Radio, you should sell it because Sirius is the main play in this group," he said. "Sirius is not worth selling, not one bit. Sirius is worth buying."
has been a "consistent gainer for the last three years," and people are starting to take notice, Cramer told viewers.
The company has a lot of oil in the ground and doesn't miss its quarters, he said.
As "Exxon has been so consistent in this period, it keeps going higher," Cramer added. "If the oil stocks fall out of favor for a while, Exxon is the one you want to buy."
It is now the "anointed oil" company and the one Cramer is focused on.
For the longest time there was a belief that natural gas was coming down, so companies exposed to it went down. But now that natural gas has started to go up, it is taking
up with it, Cramer said. He owns the company for his charitable trust,
Action Alerts PLUS.
Halliburton is a stock that market players should look at, he said.
Indigestible Whole Foods
Popular stocks tend to lose their steam, particularly when they get to twice their growth rates when compared with their multiples, Cramer said.
Therefore, people need to sell
( WFMI), he said.
Cramer has always advised people not to sell into the panic, but because of the bounce in Whole Foods right now, he suggested ringing the register.
It is a momentum stock, and "we should hate it" as it is down 11 straight points, he said. When a company's growth slows, market players should want to leave the stock -- unless it gets cheap, which Whole Foods is not getting, Cramer said.
The stock "is more dangerous down here than it was when it was higher, because there's no justification for it to go higher," he said. "Whole Foods is now a broken stock, and people should take advantage of the bounce and sell it."
Every week readers of
vote on the stock they most want Cramer to talk about. This week's "Cramer on Demand" stock was
SAIC is like the next
because it was priced too cheap, Cramer said.
"It is a Donald Rumsfeld stock," he said referring to the former U.S. Secretary of Defense. "People believe it will only do well "when the Defense Department has a blank check."
But market-players should not worry about this stock, Cramer said. They should feel confident that SAIC is the defense stock that should work.
People need to get into domestic security, and SAIC is the stock that should do well in that cohort, he said. While Cramer's previous domestic security pick was
, he said he's replacing it with SAIC.
Regarding health care stocks, Cramer said that if the fundamentals of the company are good, then market players should pull the trigger on these stocks -- but not all at once.
As it is difficult to call a bottom in these stocks right now, he suggested that people buy incrementally.
has another 4 points to go before market players should sell it, Cramer told a caller.
"You've got room for multiple expansions at Microsoft," he said.
However, when the stock reaches $32, Cramer said he might want to take "a breather" with it. Microsoft was recently trading at $29.25.
"If you want explosion, you want
," he told the caller. "On Nov. 15, it will reveal its new line of
shoes, and then it will go to $50."
Crocs was recently trading at $44.64.
Responding to his next caller, Cramer said he doesn't trust
because it badly missed its quarter.
As it's been up a couple of days, he suggested ringing the register.
When a caller asked about
, Cramer said it would be better for people to trade out of homebuilders and buy them back when these stocks come in again.
has continually beaten its estimates, Cramer said he would own and buy this stock.
"When we see a company do better than Wall Street expects, the stock will go up, which is what is happening with Harley-Davidson," he said. "If you want to buy 100 shares, buy 50 now" and wait for it to come in a bit to buy the rest.
is for real," Cramer told another caller.
The company has "put together a couple of really good quarters" and it is a "good stock, which is making money," he said.
Although he said it is not as good as
and he prefers Sirius, Cramer told the caller that he'll be fine owning RealNetworks.
At the time of publication, Cramer was long Halliburton.
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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