RealMoney Radio Recap: Dining for Dollars

Cramer says that casual dining chains and homebuilders are to be bought. Also, home appliance hurrah.
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You must get out of staples, Jim Cramer iterated Friday on his on his

"RealMoney" radio show.

He told listeners to get out of

Clorox

(CLX) - Get Report

,

Kellogg

(K) - Get Report

and

General Mills

(GIS) - Get Report

and into

Costco

(COST) - Get Report

and

Starbucks

(SBUX) - Get Report

, as well as companies with casual-dining chains, such as

KFC

parent company

Yum! Brands

(YUM) - Get Report

.

Additionally, Cramer said that

Olive Garden

and

Red Lobster

parent

Darden

(DRI) - Get Report

and

Wendy's

(WEN) - Get Report

are restaurant plays.

Cramer also recommended homebuilders, which are down today after a disappointing report from

Centex

(CTX)

.

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Crummy IPOs

"This is the best market I've seen in six years," said Cramer.

An article in

The Wall Street Journal

today blamed a number of withdrawn initial public offerings on bad market conditions. But, Cramer said, it's possible that the companies withdrew their offerings because "maybe these are crummy companies."

Maybe the executives at companies such as

El Pollo Loco

are getting greedy, and maybe there are merchandise problems, Cramer said.

But there have been a number of great IPO stories, he added, citing defense contractor

SAIC

(SAI)

, voice and communications company

Acme Packet

(APKT)

and health insurer

eHealth

(EHTH) - Get Report

.

"Those deals get done when others get shelved," Cramer said.

"

Home Depot

(HD) - Get Report

is blowing up, and the management is clueless," said Cramer.

They've fired everybody but the guy at the top, "Home Despot's" CEO Bob Nardelli, and the company is falling apart, said Cramer. The problem with Home Depot is that people just don't like it anymore, Cramer said.

"I've switched to

Lowe's

(LOW) - Get Report

entirely."

"You need to pull the trigger on Lowe's" when its biggest competitor is falling apart, Cramer said.

Cramer's Callers

Lowe's may have taken a hit because of a negative analyst's report from research firm Prudential today, but this is an opportunity to buy, he said. Lowe's will benefit from the "total disarray" of Home Depot.

It's too late to get into

J.C. Penney

(JCP) - Get Report

because it's gone up already, but Lowe's hasn't yet, Cramer said.

After finishing his analysis of

GE's

(GE) - Get Report

quarter, Cramer said that one thing that seemed to come out of left field was how well home appliances did.

And if GE is doing well, so is

Whirlpool

(WHR) - Get Report

, he told one caller who asked about the company. "Not until it gets to $100 from $88 would I take the stock off the table."

Whirlpool makes washers and dryers for

Sears

(SHLD)

, which Cramer recommends and owns for his charitable trust,

Action Alerts PLUS.

"

Cisco

(CSCO) - Get Report

is terrific," Cramer said to another caller. The stock reached a 52-week high today and it's the best single name in tech, he said.

Shares, which are currently trading just over $24.50, wouldn't even be expensive at $30, Cramer said. He also recommends

Acme Packet

(APKT)

.

Copper has been shooting up, and the companies are in a "miraculously good situation," Cramer told another caller inquiring about

Southern Copper

(PCU)

. "I like copper because it's in short supply," he said.

Cramer also recommends

Phelps Dodge

(PD) - Get Report

, which he says is cheap. "That stock could double and not be expensive," he said.

At the time of publication, Cramer was long Sears Holdings.

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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