If you are underweight oil and natural gas stocks, get ready to buy them next week, James Cramer said on his
"RealMoney" radio show Thursday.
Oil and gas stocks are coming down, and Cramer believes most individual investors are still underweight oil and gas. That tells him the move isn't over, he said.
Cramer recommends buying "intermediate" natural gas and oil companies that "can still be nimble enough that a big find means something." His favorites are
( XTO). He also likes drilling supplier
National Oilwell Varco
and would even consider majors like
, Cramer said Sears director Steve Mnuchin bought 265,000 shares of Sears Tuesday and Wednesday on the open market, thus reinforcing Cramer's long-term bullishness on the stock.
In response to a question about
, Cramer said he would sell KBH, adding that he is bearish on homebuilder stocks in general.
Cramer said he is "sticking by"
. He knows the company well, has walked the company's land in Florida and is not in the stock for a trade.
Cramer said he made a mistake recommending
Annaly Mortgage Management
, which has fallen to about $13 from roughly $20. Cramer believes the stock is headed for $10, and he would look to buy it there. The company "got thrown through the windshield" by the
tightening of interest rates, he said.
In his weekly "Stump Cramer" segment, Cramer was intrigued by
Willis Lease Finance
In response to a question about Brazilian stocks, Cramer was bullish, saying Brazil is "the real deal."
A caller asked if the "Cramer Tech Rally" included
( ZRAN). Cramer said Zoran is in the "sweet spot," but he once had a bad experience with the stock when the company announced accounting irregularities. That "burned me too much," he said, adding that he doesn't trust the company.
Cramer is cautious on
, due to a report of a big screen TV glut. Although he doesn't believe the report, his favorite area of the tech rally is cell phones.
In response to a question about
, which Cramer identified Tuesday on his "Mad Money" TV show as a potential takeover play, Cramer said the stock had moved beyond where it should be. He would look to buy the stock below its recent $10.25. "If it doesn't get to $9, I would take a pass," he said, adding he now prefers fellow independent Gulf oil and gas takeover play
Finally, Cramer reiterated his bullishness on
( LU), saying if Lucent gets the orders he expects from Cingular and
( BLS), the stock goes to $4. If not, it probably goes lower, he said. Lucent fetched $3.05 Thursday.
At the time of publication, Cramer was long EnCana, Cimarex, St. Joe, Lucent and Sears.
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
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