This morning Credit Suisse came out with a report and upgraded
XM Satellite Radio
, saying that the company has lowered its expectations to the point where it might be able to beat them, Jim Cramer said on his
"RealMoney" radio show Thursday.
Credit Suisse also said that a merger between XM Radio and
is possible, Cramer said.
"Sirius and XM Radio are slaughtering each other to gain more customers," he said. "This battle hurts both companies."
The two companies "have very little downside and a lot of upside" if they combine, Cramer said.
Human nature is quite predictable, he said, in the sense that when gas was "going through the roof," people were complaining and moaning. But now with the current gas pump prices, there are no more complaints.
"OPEC has found the level of oil production at around $60 a barrel that makes many of the alternative energy projects just too dicey," Cramer said.
However, he wishes it had remained at $70, because that would have forced the US to develop alternative sources to oil, in which case
would have both been great long-term buys.
Cramer said he wants his listeners to keep in mind that the drop in oil has hit infrastructure and alternative energy plays. Natural gas has also been hit, he said.
Whereas last year the natural gas bill in the country "went nuts and cut back all of consumer spending," this year, the opposite is happening, Cramer said, adding that for now, people shouldn't "own anything that is drilling natural gas."
Leaving Las Vegas
When people mention the word "Vegas" many things come to mind, such as sin, gambling and money, said Cramer.
But that's not the only place to make money -- there's also Macau, located on the east coast of China, he said.
But, for the first time since Macau has become such an invested area for U.S. gambling companies, Cramer said he is worried.
which owns 19% of the market, recently said in a call that Macau visitors don't care about luxury and square footage; all they are concerned with is gambling, he said.
Cramer wants market players to "be cautious" of
Las Vegas Sands
, the two main players in this field.
He said he would take a little Las Vegas Sands, which is up 100% year over year, off the table and sell Wynn.
Although the gambling space is "really bad,"
International Game Technology
, which Cramer owns for his charitable trust
Action Alerts PLUS, is a good way to play the sector.
The stock, which hit its 52-week high on Wednesday, is levered to new casinos being built, he said.
Every week readers of
vote on the stock they most want Cramer to talk about. This week's "Cramer on Demand" stock was
Yum! Brands, which has "long been a favorite on this show," has franchises, such as Pizza Hut and Kentucky Fried Chicken, which are not just popular in America but also in Europe and Asia, Cramer said.
"Yum! Has been the greatest growth story with KFC in China, along with
," he said.
Cramer called it a cheap stock and gave it "two thumbs way up."
Level 3 Communications
, Cramer advised a caller never to buy calls on a $4 stock.
Level 3, a company that provides bandwidth to Web sites, just signed a deal with
, Cramer said.
He said it's a $16 stock because of its 2009 free cash flow of $1 billion.
"Level 3 is a company that is literally five times bigger than it is right now," Cramer said. "You cannot catch a quadruple in most stocks."
He told people to buy it because it won't be under $5 for long.
Responding to his next caller, Cramer said
has turned and made some positive changes.
"It's gone from a stock that I disliked to one that I have warmed up to," because oil is down, and the retailer has fallen behind many other companies in its sector, he said.
"I want to own it," Cramer said. "It is going high."
, to Cramer, is "a great fourth-quarter play."
The company produces GPS products, which "are like rich people's toys," he said.
Cramer said when he thinks about what does well in sporting goods stores, he keeps coming back to Garmin. He believes that the stock will do well this holiday season.
Cramer said it reminds him of Starbucks and
as expensive stocks that have been hammered.
He told another caller to wait on
to make a pullback before buying it, as it has gone up since Cramer recommended it a couple of days ago.
When a listener called inquiring about
, Cramer said he believes that the problem with Ford is that it's moved up so much in the last week that now people don't want to get into it.
Cramer said he doesn't know if it's done going up for the moment, but he believes that Ford is going to $12, but it might take a pit stop and go a little lower.
Regarding Ford, if Cramer were to buy 200 shares, he'd buy 100 now and 100 later.
At the time of publication, Cramer was long International Game Technology.
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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