'RealMoney' Radio Recap: Maxx-ing Out

Cramer says the discount clothing retailer is a bargain. Also, Lenny Dykstra weighs in.
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The stock of

TJX Companies

(TJX) - Get Report

, the retailer that owns T.J. Maxx and Marshalls, is as cheap as its clothes, said Jim Cramer on his

"RealMoney" radio show Monday, and he wants you to buy the stock.

Cramer has been bearish on retail, but said it's time to start looking for retailers that have bottomed. TJX fits the bill.

TJX lowered earnings estimates last week, which is bullish for the stock, he said, because TJX now has reasonable earnings estimates it can meet. That's the first step for a stock to bottom, he said.

What's more, TJX should benefit from a slowdown in the economy because people tend to shop more at T.J. Maxx and Marshalls when they don't feel as affluent.

Third, the company's former CEO, Ben Cammarata, is back, said Cramer. Cramer is a big fan of Cammarata.

Finally, Cramer believes that TJX should be able to sell some of its stand-alone retail stores such as

Bob's Stores

,

A.J. Wright

or

HomeGoods

to an "eager and willing private-equity market."

TJX is a "safe and smart" buy here, said Cramer. The company's shares were recently trading up 57 cents to $21.78 on Monday.

Stealing Stocks

Lenny "Nails" Dykstra joined Cramer to talk about

Nordic American Tanker Shipping

(NAT) - Get Report

and

Constellation Brands

(STZ) - Get Report

.

Dykstra highlighted Nordic American Tanker's 9.7% yield, but Cramer advised listeners to be cautious because tanker stocks' dividends have been known to fluctuate wildly. "It's not a layup," to get that dividend, said Cramer.

A caller asked about

RehabCare Group

(RHB)

and

HealthSouth

(HLSH)

. Cramer said he would sell both.

Commenting on health care stocks in general, Cramer said he likes diagnostic stocks, health care cost-containment stocks and biotech. Cramer recommended diagnostic play

Digene

(DIGE)

last week, and he has long been bullish on

UnitedHealth Group

(UNH) - Get Report

as a health care cost-containment play.

As for biotech, Cramer likes

Genentech

(DNA)

and

Amgen

(AMGN) - Get Report

.

Selling Drugs

As for the major drug stocks, Cramer said

Novartis

(NVS) - Get Report

,

Wyeth

(WYE)

and

Sanofi-Aventis

(SNY) - Get Report

are very good.

Schering-Plough

(SGP)

is not doing badly, and Cramer will warm up to

Johnson & Johnson

(JNJ) - Get Report

once its acquisition of

Guidant

(GDT)

closes.

The rest of the major drug stocks are doing very badly, he said.

The "bloom is off the rose" for

Shanda Interactive Entertainment

(SNDA)

, said Cramer. The company's most recent quarter was OK, he said, but it was not as good as people were looking for.

What's more, the market is not in the mood for speculative stocks right now, said Cramer. He would sell it.

Cramer is steadfastly and uniformly bearish on the airlines stocks. He doesn't like any of them, not even for a trade.

In response to a question about

Superior Well Services

(SWSI)

, Cramer would ring the register. Even though SWSI has not yet been caught in the downdraft of selling that many energy stocks have experienced, Cramer expects SWSI's stock to drop at some point.

Cramer would look to buy back SWSI at lower prices, or he would look to buy an oil-service company such as

Schlumberger

(SLB) - Get Report

, which is now more cheaply priced than SWSI.

Commenting on exchange-traded funds within energy, Cramer prefers the

Energy Select SPDR

(XLE) - Get Report

to the

iShares S&P Global Energy Sector Index Fund

(IXC) - Get Report

because the XLE is more liquid, he said.

Cramer isn't giving up on energy, but he believes that the XLE will pull back to $47 unless there is a cold snap. Cramer is looking to trade energy stocks now, not to invest in them, he said. He would use any rise in oil stocks to lighten up and be ready to buy again on the way down.

The XLE ended the regular trading session Monday at $48.86.

At the time of publication, Cramer was long UnitedHealth Group.

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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