Large, integrated oil companies aren't necessarily the ones making good money from high gasoline prices, Jim Cramer said on his

"RealMoney" radio show Tuesday.

He said that there are better plays than

Exxon Mobil

(XOM) - Get Report

and that the refiners are the pure play on this price increase at the pump.

Thanks to local governments, environmental protectionists and citizens who don't want a refinery in their backyards, no new refineries have been built in this country in 25 years, Cramer said.

But there is tremendous demand for refined gasoline.

Couple that with sky-high crude oil prices and threats to supply, and Cramer said you'll see gas prices hitting new highs.

Whoever has the most refineries and gas stations will make the money on high gas prices, he said. And his top choice was

Valero Energy

(VLO) - Get Report

.

He said that

Alon USA Energy

(ALJ)

would be the speculative play.

Cramer's Callers

Cramer told a caller that he couldn't "sugarcoat" the

Broadcom

(BRCM)

story, saying that the stock is getting beaten down like a pinata.

But he said that the company's fundamentals are still good because Broadcom designs, develops and supplies the brains for high-speed networking, cable set-top boxes and cable modems.

"It's in the sweet spot for video on demand," Cramer said. This is because both cable and phone companies need Broadcom products to deliver video to your home.

But the stock is up well more than 100% year on year, so Cramer said it's falling victim to profit-taking. Because last year at this time it was at $18, and now it's at $43, Cramer said he understands why people would want to lock in that kind of profit.

If you want to buy this company, he recommended buying in stages because the price is going to continue to fall. Let the market bring the stock down to a low price and then pick it up before it runs higher again, Cramer said, because there's nothing fundamentally wrong with Broadcom.

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He told another caller that he can't recommend

Nortel

(NT)

, despite believing that Chief Executive Mike Zafirovski is an excellent manager.

The stock is falling for two reasons, Cramer said. The first is that the company keeps finding losses, which shows that its finances are still shaky. Accounting irregularities are a good reason to stay away from a stock, he said.

Second, the company got a bid from

Alcatel

(ALA)

that ignited the group, but it is now thought that Nortel is too big a Canadian company for a buyout, Cramer said. This means the company isn't seen as a potential takeover target.

Cramer said that

Altria

(MO) - Get Report

, which he owns for his

ActionAlerts PLUS charitable trust portfolio, has been weak for almost 10 straight points, and that he would typically start buying now if he didn't already have a position in the stock.

This is because he believes that once its last two major court cases are behind it, the company will spin off its Philip Morris International, Philip Morris Domestic and Kraft Foods units.

After the company is divided up, Cramer said that the stock could be worth $100 a share, up from its current price near $69.

Plus, he said that investors get a 4.6% yield while they wait for this to happen.

He told another caller that he likes

Australia & New Zealand Banking Group

(ANZ)

because the Australian stock market is on fire.

He attributed this to the fact that the Australian economy is resource-based and that the country is a place where you can find aluminum, gold, copper and zinc. This has lifted the whole market in Australia, including bank stocks.

ANZ Bank is the biggest bank in that country, and its stock has been red hot, Cramer said. Plus it yields 4.4%.

The stock has had a remarkable run, but Cramer said it's still cheap.

Cramer said that he doesn't like

NEC

(NIPNY)

because it's not a best-of-breed company. He reminded listeners that picking stocks from overseas always makes the situation tougher.

Instead of going with NEC, he said that he would choose

Matsushita Electric Industrial

(MC) - Get Report

because he said the Japanese company is the best home-appliance and AV company in the world.

A caller wanted to know why

Rackable Systems

(RACK)

is in freefall, and Cramer said that it's a situation akin to Broadcom's. The only crime the company has committed is being up 71% year to date, he said.

That means investors are locking in that great gain, so the stock is coming in.

However, Cramer said that the company has great fundamentals because it makes high-density servers and storage systems that are used by companies such as

Google

(GOOG) - Get Report

.

Cramer told listeners that they need to understand why stocks go down in order to make real money in the market. He said that all stocks rise and eventually fall before rising again, and that this is integral to the investing process.

"This is a fluctuating system," he said. And unless something is wrong with the company, many times when a stock is down there is no real reason for the fall.

Cramer used

Ciena

(CIEN) - Get Report

as an example because the stock is down more than a point after a "remarkable run" higher.

He likes the company's fundamentals because its equipment is integral in creating the fiber-optic network that phone companies need to compete with cable companies.

Ciena was around $3.90 at the end of January, and by the end of March it had gone to $5.50, he said. If you bought it at the beginning of the year and sold it at the end of the quarter, then you made a good profit.

But if you bought shares in March, you saw the stock fall.

But there's nothing wrong with this company, he said. The fundamental story is the same, and the management hasn't changed.

"There's nothing on the horizon that other people know that you don't know," he added.

There's no real reason for the stock to slide, he said. There just hasn't been any news that has acted as a catalyst to lift the stock and keep it elevated.

Ciena is healthy, but the stock is damaged, he said, adding that he buys damaged stocks of healthy companies. Conversely, Cramer stays away from the stocks of sick companies, if the price is going higher.

He said that this weakness is an opportunity to buy more of the stock. This is because it will likely move higher because it is fundamentally a good company.

However, Cramer said to buy incrementally. If you want 100 shares, pick up 25 and see if the price comes down even more, he said.

At the time of publication, Cramer was long Altria.

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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