'RealMoney' Radio Recap: Hedge Those Energy Bets

Enjoy the rally in oil and gas stocks while it lasts, James Cramer said Wednesday on his

"RealMoney" radio show -- because it never does.

Cramer recommends holding up to 15% of your portfolio in energy stocks. But he warned that "a lot of crazy people are throwing money at them right now," and counseled that investors should be sure to diversify.

Will Gabrielski of

RealMoney.com's

Stocks Under $10 newsletter joined Cramer to discuss

Calpine

(CPN)

. Gabrielski said Calpine is facing a cash crunch. Gabrielski said he learned Tuesday that Calpine was told by one of its banks that it can no longer access some of its cash because bond holders have alleged the company is violating covenants.

Cramer said Calpine's stock is a "huge danger zone."

A caller asked about

Global ePoint

( GEPT). Cramer said he thought the stock had the potential for $1 up and $1 down, and he "would not want to play it."

In response to a question about

Qualcomm

(QCOM) - Get Report

, which raised its outlook Wednesday, Cramer said he is amazed the stock isn't up more than it is. "People should be buying Qualcomm," he said, adding, "I bet it's up $2 by Friday."

Picks and Pans

In his weekly "Am I Diversified" segment, Cramer said these things about stocks in listeners' portfolios.

Chesapeake Energy

(CHK) - Get Report

: Cramer's favorite natural gas stock after

EnCana

(ECA) - Get Report

.

Weyerhaeuser

(WY) - Get Report

: "

The

timber play in this country."

UnitedHealth

(UNH) - Get Report

: "If I had only one stock to own, it would be UnitedHealth." Other than

Google

(GOOG) - Get Report

, UNH has the "single best 2006 ahead of it." It's the "cheapest" stock Cramer follows.

Procter & Gamble

(PG) - Get Report

: The "best-run manufacturing company in the world." Does well in a slowdown.

Altria

(MO) - Get Report

: "Itching to buy more" if it would "come in a little bit."

Cisco

(CSCO) - Get Report

: Believes it will "eventually go up."

Genentech

( DNA): One of the two "finest" drug companies along with

Amgen

(AMGN) - Get Report

.

Valero Energy

(VLO) - Get Report

: "Superb." But, Cramer is "schnitzeling a little" and will look to buy again under $100.

Energy Conversion Devices

( ENER): Not a bad play on alternative energy, but a little too speculative for most people. Cramer also likes

Ballard Power Systems

(BLDP) - Get Report

and

Hoku Scientific

( HOKU), but would "wait for a little more pullback" on Hoku.

Lucent

( LU): Cramer is expecting big orders from

BellSouth

( BLS) and Cingular soon. "Be in before the parade of orders starts," he said.

Microsoft

(MSFT) - Get Report

: "Don't want to give up on the stock."

Intel

(INTC) - Get Report

: "Wish I had more of it."

Jarden

(JAH)

: Owns Coleman, a hurricane play. "Like it very much."

Bank of America

(BAC) - Get Report

: "Don't think the quarter will be solid."

Finally, Cramer counseled against making a big move into stocks now. "Timing is important," he said. With oil high and the Federal Reserve raising interest rates, the market is "terrible" right now. Cramer believes there will be a better time to make a move into stocks before the end of the year when the Federal Reserve has finished raising rates. Cramer believes aerospace and technology stocks, especially, will be buys then.

At the time of publication, Cramer was long EnCana, Intel, Lucent, Altria, Microsoft, Qualcomm and UnitedHealth.

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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