"New Year, same rules. Why can't people understand that?" Jim Cramer asked his
"RealMoney" radio show listeners Tuesday.
He said that winning in January means having a handle on history. Oil, gas, minerals and gold won last year, Cramer said, and they'll win again this month.
The macro picture that encouraged money managers to buy into these sectors hasn't changed, he said, citing commodity shortages, inflation worries, demand for resources from China and the U.S. current account deficit.
The people who bet on these issues will bet on the same stocks because no idle turning of the calendar page will bring new names to the fore.
Investors need to get comfortable buying these sectors because the obsession for resources is not going to end anytime soon.
He said that derivative plays include
Tuesday's listeners were treated to an edition of the "danger zone," which Cramer kicked off with a cautionary tale from United Airlines.
"The common stock shareholders
in United's parent
get nothing," he said. "Now, this is important because there's another stock I know a lot of you are buying --
He said that more than 6 million shares of Calpine stock traded Tuesday on the Pink Sheets for 20 cents a share, adding that it was a danger zone stock at $3 and will certainly soon be worth zero.
"You will not get the assets of this power generation company if you buy this thing," Cramer said. "As part of the reorganization in bankruptcy, they will wipe you out."
A caller wanted to know if
is a "danger zone" stock.
Cramer said that the issue is that the stock itself is on hold. All of the good news about that company -- the back orders, the fact that Howard Stern and Mel Karmazin are in it to win -- has been priced into the company.
The reason it's an $8 billion company is because it's expected to succeed, Cramer said. So, not only does Sirius need to sell out virtually nationwide, the company needs to see those buyers renew their subscriptions.
Until we see this, he said, the stock will stay on hold.
Remember Your Shield
Cramer also impressed upon listeners that diversification is a must in order to shield them from huge losses.
"If you spread the risk, you will do better," he said, even if it means that there's less of a chance for a huge windfall.
He said that even though he supports speculation, he does not recommend putting more than 20% on any one stock, because of the downside.
A caller wanted to know how to handle
( MOT) ahead of its earnings announcement, scheduled for Jan. 17.
Cramer said he is still bullish on the stock because he sees a positive cell-phone outlook in 2006 that will boost Motorola.
But he also said he'll take some off the table ahead of the earnings results so as not to be a pig.
He also said that he's bullish on
, particularly because
Stocks Under $10 team recommends the company.
Let's Make a Deal
Cramer also told listeners to pay attention to the deal brewing between
and chemicals and plastics giant
( BF), because it's igniting the stock market.
He also said that the deal could positively boost
( LYO), a stock often recommended by Lenny Dykstra,
celebrity investor and "RealMoney" Radio's disciplined trader.
, Cramer said it's a great brand, but not a great buy right now.
He said that high oil prices will dog the company, because the people who buy the sporting gear usually drive SUVs to go hunting, or even just to get to the stores.
Cramer also said that the insider trading at Sirius is "horrendous ... and not over."
He said that the stock has played itself out, and while investors who own Sirius don't need to sell, it's not a buy.
At the time of publication, Cramer was long Motorola.
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."