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'RealMoney' Radio Recap: Supply for Video on Demand

Cramer assembles the basket of stocks you need to profit from the technology.

The National Football League just cut a $600 million deal with


(S) - Get SentinelOne, Inc. Class A Report

so that cell-phone subscribers can get NFL highlights, statistics and programs on their handsets, Jim Cramer said on his

"RealMoney" radio show Wednesday. The deal provides more evidence that the Internet is still an expanding business.

Cramer said that he likes

Rackable Systems



Akamai Technologies

(AKAM) - Get Akamai Technologies, Inc. Report


F5 Networks

(FFIV) - Get F5, Inc. Report

as plays on the expanding reach of the Internet highway.

But he warned that these have been "fast and furious stocks," running up very high, and that they could be due for a pullback. Cramer said that he would wait for the price to come down before buying more, and then he would buy only part of his position.

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Putting all your money on the table is the sin of arrogance, he said. Buy some, and then wait for the stock to come down.

The leaders in the Internet space are using semiconductor chips made by

Advanced Micro Devices

(AMD) - Get Advanced Micro Devices, Inc. Report

, and he believes that it's because AMD's chips are cheaper and faster than chips made by


(INTC) - Get Intel Corporation Report


A caller wanted to know about why he should buy



. Cramer likes the company because it is part of a basket of stocks that he says is key to video on demand.

Almost every phone line in the country is copper, and the phone companies need to change over to fiber in order to transmit television and broadband signals into our homes, Cramer said.

This basket of stocks is necessary for this rollout, he said.

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Cramer said that Avanex products enable phone companies to transmit signals,


(FNSR) - Get Finisar Corporation Report

makes the semiconductors that allow this to happen and



makes the testers.

He also likes

Mindspeed Technologies


, which makes equipment that beams signals into your home, and Cramer believes that the company is about to report its first good quarter.





(CIEN) - Get Ciena Corporation Report

are also in this basket, he said.

Oil Prospects

Oil is going to $66 a barrel thanks to problems in Nigeria and the possibility that oil workers in Norway will strike. Outside of the Middle East, these countries are some of the largest oil producers in the world, Cramer said.

"If a major producer gets knocked out, it will affect the price of oil to a point where I believe you will see $70 a barrel and $4 at your pump," he added. And that's because it is supply, not demand that will move prices.

People, he said, want to focus on demand -- on whether the U.S. economy is strong enough to sustain high oil prices -- but that this is misguided.

Demand will remain strong thanks to robust oil demand in developing nations like China and India, he said.

"Forget demand side. The tightness of supply is what's key ... and a supply problem is one country away."

So long as geopolitical instability means that supply could be knocked off at any moment, oil prices will stay high. That's why Cramer believes that a five-stock portfolio needs to have an oil company, or you can't profit from this supply tension.

Cramer said that he likes

Occidental Petroleum

(OXY) - Get Occidental Petroleum Corporation Report

, a stock he owns for his

ActionAlerts PLUS charitable trust, because it's an inexpensive play in the sector.

A listener emailed and said that he wants to know when to sell a stock because Cramer often says that "bulls make money, bears make money but hogs get slaughtered."

For starters, being a hog means that the stock you bought doubles or you get a gain of about 25% in three weeks or less and you don't take any off the table, Cramer said.

If you bought


(GOOG) - Get Alphabet Inc. Class C Report

at $180 and it got to $360, then you need to take half your position off the table, he said. That's because if a stock doubles and you take half your position off, you are then just playing with the house's money.

Large gains or 25% jumps in a short period of time are rarely sustainable, he said. And if the stock pulls back, you can buy back the stock you sold. That's called trading around a position, he said.

Plus, Cramer said it's important to remember that "paying the taxman is okay."

People try to avoid paying taxes at all costs. But if you buy and hold and are sitting on a big gain, then you run the risk of losing those gains.

It's better to take your money and "let the taxman have his cut," than to see that gain slip away, he said.

The upside takes care of itself, he said. We're concerned with losing money.

He said that it's better to put your own limit orders on a stock rather than put in a stop-loss order with a broker. "The system wants you in and out of stocks," he said. "Don't let the system con you."

A caller said that he bought

Intuitive Surgical

(ISRG) - Get Intuitive Surgical, Inc. Report

at $40, and sold some at $114 to lock in that gain. Cramer applauded him.

Given all the bad news coming out of

General Motors

(GM) - Get General Motors Company Report

, the stock has fallen to $22, but Cramer said that it's still not worth buying.

The sale of GMAC, the company's profitable financing arm, may not even go through because no one trusts the financials, he said. And even though the stock has come down, he doesn't believe it has much chance to go higher.


(TM) - Get Toyota Motor Corp. Report

is the only auto stock he would recommend.

Cramer said that trading commodities is difficult, so he said to buy stocks that get metals out of the ground in order make money on higher prices.

Cramer said that

BHP Billiton

(BHP) - Get BHP Group Ltd. Report

is "the supermarket of commodities" as it produces titanium, gold, uranium, copper, iron ore and nickel.

He likes the stock and owns its for his

ActionAlerts PLUS charitable trust.

"We're fast approaching the moment when the best way to make money is to do nothing," he told listeners.

That's because the

Federal Reserve

just raised the overnight bank lending rate to 4.75% and "made it clear that they're going to raise it to 5% in May."

Historically, Cramer said that when rates reach 5%, people take their money from the drama and risk of stocks to the safety of a savings account when they can make a decent return risk-free.

Cramer believes that taking investor dollars out of stocks helps to slow an economy deemed too strong and that this could very well happen.

Finally, he told a caller that



stock is a very hot topic.

People want a piece of the company because they value it for its brand, he said, adding that the company is very well run.

Now that the stock is down 10 points from its high, Cramer believes that this is an opportunity to buy.

However, he said that if he wanted 25 shares, he would buy 15 now and hope that it came in before putting the rest on the table.

Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by

clicking here


At the time of publication, Cramer was long BHP Billiton and Occidental Petroleum.

James J. Cramer is a director and co-founder of He contributes daily market commentary for's sites and serves as an adviser to the company's CEO. Outside contributing columnists for and, 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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