As money goes into defensive stocks, the waste bin is filling up with some pretty good cyclicals, Jim Cramer said on his

"RealMoney" radio show Wednesday.

For example, on Tuesday, when Canadian distributor


came out and said how well business is going for parent company


(CAT) - Get Report

, nobody cared, and Caterpillar went down, he said.



(IR) - Get Report

, a stock Cramer owns for his charitable trust,

Action Alerts PLUS, announced less than 10 days ago that it was going to buy back stock and raise its dividend. Consequently, the stock went up $1, and then stopped because, again, nobody cares, Cramer said.


United Technologies

, which has little exposure to the U.S., has gone down, he said. United Technologies is another company which Cramer owns for his charitable trust.

The lesson here is that if you are looking at the game short term, then defensive stocks, such as


(K) - Get Report


General Mills

(GIS) - Get Report

, are the place to look, Cramer said.

These are the stocks that work right after a tightening.

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"You've got to sell companies that have exposure to the economy, and you have to go into cereals, soaps and soups," he said. "Don't fight this trend for the next three months."

Six months from now, cyclicals will do better than the defensive stocks, he added.

Wellness at Philips

In an "eHarmony matchmaking" bit, Cramer says that he sees a pairing up between


(VAR) - Get Report


Philips Electronics

(PHG) - Get Report

within the next year.

You are going to make money in Varian either through a takeover or earnings, he said.

On the strength of its anticancer machines and X-ray machines, Cramer believes that Varian is going to get a bid.

Philips is moving aggressively into the medical-imaging and wellness business by acquiring companies in this space, Cramer said. He believes that Philips might have to pay $60 a share to buy Varian and then spin off Varian's security and screening division.

"They could sell it to

General Electric

(GE) - Get Report

," he said.

Cramer, who reminded viewers that they cannot speculate a takeover if the company's fundamentals are not good, said that Varian's are great.

"Keep it on your radar screen," he said. "I believe Varian's the next big one."

In light of


(BP) - Get Report

recently shut-down pipeline, Cramer said that now there are 16 miles worth of steel that the company needs to replace. He wondered who would get that contract.

Although no one knows for sure, Cramer said his pick would be

Oregon Steel

( OS).

The steel stocks got annihilated on Tuesday because people believe we are headed into a recession and are thus dumping cyclical stocks, Cramer said. But he believes that the pause in rate hikes means a recession will be averted and has created an opportunity to buy steel instead of selling it.

Brick by Brick

U.S. Concrete

( RMIX) is directly related to housing, and therefore not doing well, Cramer told a caller.

There was a devastating press release from

Toll Brothers

(TOL) - Get Report

this morning that stated there is far too much inventory, he said.

"We don't need to build as many houses in this country, Cramer said, adding that "concrete is going to go lower."


(TXT) - Get Report

is "a multifaceted conglomerate that is growing at 12% with a management that is heavily devoted to making you money," Cramer told another caller, adding that he can see

United Technologies

buying the company in a heartbeat.

"It's a keeper," he said.


(GME) - Get Report

is a company Cramer said he wishes he had not sold.

GameStop, the single biggest place to buy PlayStation, Nintendo and Xbox, should be bought on any pullback, he said, adding that he likes it now at $44.

When a caller inquired about

Yamana Gold

(AUY) - Get Report

, Cramer called it the "great speculative play in this market."

The nonspeculative play is to go buy

Barrick Gold


, but Yamana is more of a secretive story, said Cramer.

Right now at $10, Yamana is a buy.

Cramer advised a caller to get out of


( FDG) and get into


(BTU) - Get Report


Arch Coal

(ACI) - Get Report


When a caller asked about


(UNH) - Get Report

, a stock he owns for his charitable trust,

Action Alerts PLUS, Cramer recommended double downing here.

He believes that UnitedHealth will be vindicated on its options backdating scandal and said that now is an opportunity to get into it.

"UnitedHealth is going to $60 a share," he said.

Although an analyst downgraded

Teva Pharmaceutical

(TEVA) - Get Report

, Cramer told a caller he heard a lot of good statements from the company Wednesday and would stay in the game.

He said that people don't consider

EuroZinc Mining

(EZM) - Get Report

a serious company because it trades at $2 a share, but he suggested that a caller go buy some.

Cramer told another caller to hold


(CIB) - Get Report

, predicting that it will go to $30 before it starts moving down; and he told a separate caller that because there is a gigantic rig shortage, the play in the sector is

National Oilwell Varco

(NOV) - Get Report


Bancolombia was recently at $28.67.

At the time of publication, Cramer was long Ingersoll-Rand, United Health and United Technologies.

Jim Cramer is a director and co-founder of He contributes daily market commentary for's sites and serves as an adviser to the company's CEO. Outside contributing columnists for and, 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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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

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