"For two months now I have been urged, cajoled and beseeched to talk up
, a company that makes copper wire largely for homebuilders," Jim Cramer said on his
"RealMoney" radio show Wednesday.
However, in the time people have tried to push this stock on Cramer, he has seen it go down in a free fall, from $40 to $23. Had he listened to his critics and recommended Encore Wire, Cramer would have hurt many of his listeners.
"My credibility would be gone," he said. "Encore Wire is levered to the worst part of the economy, and it has missed its estimates big-time and has had its earnings estimates for the future slashed."
People know that if Cramer gets behind a stock then he might have the ability to move it up and "create a short-squeeze," but he doesn't "play that game," he said.
Investors know there was a squeeze in
, a stock Cramer likes very much, which had a similar short position. But this was because the company repeatedly beat numbers, "and that's what moves stocks higher," he said.
If market players learn to look at the world with a "critical eye," they will see that there are a lot more people getting fat everywhere, Cramer said. And these people are looking for someone to blame.
Stay in the Game
People cannot win unless they stay in the stock market game, said Cramer.
On Tuesday, there was an "unbelievable surge" in the market due to one player that came in with $500 million and bought a ton of stock futures, he said.
The fact that one person was able to come in and move the market tells Cramer there is not a lot of stock for sale. Maybe the investor came in because he needed the market higher or decided to cover a short, Cramer said.
Either way, the lack of supply has allowed big buyers to come in and move the market now, whereas before there was plenty of supply, and people were not able to do this, Cramer said.
There is not a lot of supply because of the high level of company buybacks, he said.
"I am just amazed at how much stock is being taken out. And it's causing the market to rally," he said. "You need to be in to win."
is going higher today, but if people listen to the company's conference call, they will realize it's not because D.R. Horton has a better-than-expected quarter, Cramer said.
The actual reason it's moving up, "and the reason all of the homebuilders have bids underneath, is the spectacularly easy sale of land that it's been sitting on," he explained. The company's home inventory and inventory of excess land is being worked off.
Most homebuilders have too many homes and too much land, which has been the bears' major case. Now both inventories are being cut, Cramer said.
A bottom is in the process of being put into the homebuilders, he said.
Public enemy No. 1 is not fries, but Doritos, Cramer went on to say. Although the government may never mandate that Doritos "be taken off the shelf," Cramer said it is likely that people will stop eating them.
"The growth rate of Frito-Lay is going to slow down," he said. "They are not going to be bought with the reckless abandon they once were."
Therefore, when market players see strength in
, Cramer advised them to sell the stock.
are my favorite high-yielding stocks," Cramer told a caller.
Verizon, which yields 4.5% and AT&T, which yields 4.1%, have "bountiful yields," he said.
Cramer advised the caller to buy some Verizon or AT&T, and if the stocks come down, he said buy some more.
are two stocks that he believes should go down.
Another company with a high dividend that Cramer considers a "favorite" is
, which he owns for his charitable trust,
Action Alerts PLUS.
Responding to his next caller, Cramer called
Black & Decker
a good stock, but also mentioned keeping in mind that the stock has had a big run.
is a stock Cramer told another caller he has liked for a very long time.
"I believe it goes to $100, and I would be an aggressive buyer of the stock," he said.
Boeing was recently trading at $86.96.
On the other hand, Cramer said he considers
"one of the worst oil companies out there."
He said he would rather see market players in a stock such as
At the time of publication, Cramer was long Altria.
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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