Alcoa

(AA) - Get Report

gave a "horrendous report," last night, said Jim Cramer on his

"RealMoney" radio show Wednesday.

The company totally missed its guidance, and as a result, "a lot of people panicked out of a lot of stocks," he said. People were dumping stocks like

Alcan

(AL) - Get Report

and

Phelps Dodge

(PD) - Get Report

, but now it seems they've come to their senses.

Investors have realized that Alcoa is simply a victim of bad management, he said, urging them not to be put off by the stock.

"It reminds me of

Sirius Satellite Radio

(SIRI) - Get Report

," Cramer said, which is doing well, but when

XM Satellite Radio

(XMSR)

missed its projections, all people cared about was how bad XM was doing, not how well Sirius was doing.

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A lot of tech stocks are doing well, Cramer said. Among them, he recommends

Akamai

(AKAM) - Get Report

and

DivX

(DIVX)

.

If you don't have any tech, "I need you to make a change out of soups, soaps and cereals," into

Googles

(GOOG) - Get Report

and

Ciscos

(CSCO) - Get Report

, Cramer said.

He also said it's time to go back into industrials. People should get out of

Coca-Cola

(KO) - Get Report

and

PepsiCo

(PEP) - Get Report

,

Kellogg

(K) - Get Report

and

General Mills

, and into

Black & Decker

(BDK)

.

Cisco went from $18 to $24, and

Oracle

(ORCL) - Get Report

has gone from $12 to $18 because "money coming out of staples and oil is going into tech."

Free Trade Foibles

If a major bank offers free trading, "you've got to pay attention if you do any trading at all," said Cramer.

Bank of America

(BAC) - Get Report

just announced free trading with an account minimum of $25,000, Cramer said. This move took everyone by surprise.

It was "bad luck by me to tell you to buy these

brokers' stocks" yesterday, Cramer said. "I didn't see it coming." The stock is down $2 today because no one expected it, he said, adding that analysts are likely to downgrade the stock within the next couple of days.

Because stocks trade down on downgrades, "if you own the stocks, the decline is not over," he warned.

"Pass the Oxycontin" for the pain, Cramer said. "Take your medicine and move on."

Cramer said he bought

Ameritrade

(AMTD) - Get Report

on its way down from $19 to $13 after the company's announcement that it was lowering fees.

He told people to buy at the bottom, and "if you did that, you ended up making pretty good money," Cramer said.

But "I totally underestimated how much Wall Street would turn on Ameritrade," he iterated.

Cramer's Callers

"

Arena Pharmaceuticals

(ARNA) - Get Report

has a classic series of products with a lot of ways to win," said Cramer.

Drugmakers have seen a lot of consolidation, he told one caller.

Wyeth

(WYE)

did it a long time ago, and now

Genzyme

(GENZ)

is bidding on

AnorMed

(ANOR)

.

Arena, which Cramer says is one of his favorite stocks, "represents the future." Big pharma companies often just buy new drugs for their pipeline instead of developing their own, and if Arena's deal with

Johnson & Johnson

(JNJ) - Get Report

company Ortho-McNeill for insulin products takes off, J&J will just buy the company, Cramer said.

"Arena is a good stock to own because it will be bought," and at about $14, there's a lot of upside, Cramer said.

Companies like

TJ Maxx

(TJX) - Get Report

and

Limited Brands

(LDT)

keep doing well and grinding out sales, Cramer told one caller who asked whether to stay with TJ through the holiday season.

"If I had 100 shares, I'd take off 25, but the future is very bright for TJX," he said.

"I would hold onto

Disney

(DIS) - Get Report

. I would not sell the stock," Cramer told another caller who bought shares of the company ten years ago and wondered about getting rid of it.

Under Michael Eisner, management was bad, Cramer said. But Robert Iger, "the guy who runs it now, is starting to a lot of right things." Plus, now that gas prices are lower, more people will be visiting Disneyland and Disney World, Cramer said.

Nortel

(NT)

is "getting its butt kicked by

Cisco

," Cramer told another caller. "If you could buy ten shares of Cisco rather than 100 shares of Nortel, you'd do much better," he said.

Cisco has crushed Nortel and

Lucent

(LU)

, and has taken business away from them, Cramer said.

"Nortel and Lucent should be avoided at all costs," and Cramer believes that they must be sold because they're not going any higher.

At the time of publication, Cramer was long Johnson & Johnson.

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

Action Alerts PLUS. 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." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by

clicking here.

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