'RealMoney' Radio Recap: Take the Plunge!

Cramer says to get in on this market where choices and sales abound. Also, New York City digs.
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"Don't just stand there, buy something," Jim Cramer told his

"RealMoney" radio show listeners Tuesday, saying that this down day is the one-day sale that screams "buy."

Cramer said there have been tons of markets that have seen only one bull market at a time but this bull market has choices galore.

Semiconductors and retail; oil companies and airlines; railroads and truckers; insurers, and savings and loan institutions -- they're all rallying, he said.

And for every expensive company like

Seagate

(STX) - Get Report

or

Intel

(INTC) - Get Report

, there's a

Marvell

(MRVL) - Get Report

or a

Broadcom

(BRCM)

, Cramer said.

For every

Google

(GOOG) - Get Report

or

Yahoo!

(YHOO)

, he said, there's a

Pulte Home

(PHM) - Get Report

or

Lennar

(LEN) - Get Report

.

These are dichotomies that rarely happen, when we see expensive and cheap stocks -- stocks with very little going for them over the short and long term -- all working, said Cramer.

There's lots of capital on the sidelines waiting for the first dip to get in, and here it is, Cramer said, urging listeners to get in first.

A caller wanted to know if

Ediets.com

(DIET)

is a buy, given the fact that

NutriSystems

(NTRI) - Get Report

has done well.

Cramer said that he'd looked at it as a breakout play but decided that the business wasn't good enough. Though its revenue is growing strong, Cramer said he believes it's reflected in the stock price.

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Plus, at about $7, the stock is near its 52-week high.

On the other hand, Cramer said he would stand by

Radiant Systems

(RADS)

, a company that makes integrated retail automation systems.

"The stock has done nothing since I recommended it," he said, but Cramer likes the company because it sells at 30 times earnings and is growing at 17%.

Cramer said it reminds him of

Shanda Interactive

(SNDA)

and that it's just a matter of time before Radiant goes higher.

Cramer would stay away from hospital chains such as

LifePoint Hospitals

(LPNT)

,

HCA

(HCA) - Get Report

and

Tenet

(THC) - Get Report

.

Instead, he would get in health maintenance organizations like

UnitedHealth Group

(UNH) - Get Report

.

Big Apple Housing

Tuesday's market sector spotlight focused on housing, with one listener asking if the New York City housing market had hit the skids.

Cramer said that it's a strange market because it has strict zoning regulations and it is difficult to build in the city. So while real estate in the city bounces, he doesn't think that the trough will be very low.

And within a 15-mile radius of the city, prices will stay strong because there have been a lot of Wall Street bonuses and some foreign buying, which he said will keep the New York City and its surrounding environs market from collapsing anytime soon.

He applauded a listener for getting into

Homex Development

(HXM)

, a Mexican housing company.

This is located in an oil-rich, developing nation with a lot of room to grow, Cramer said.

As for U.S. homebuilders, he told a caller that

St. Joe

(JOE) - Get Report

, which he owns for his charitable trust

Action Alerts PLUS, is not his favorite. Cramer believes that it's not cheap and says he'll buy it again at $60 and sell at $70.

Lennar,

Hovnanian

(HOV) - Get Report

and

KB Home

(KBH) - Get Report

are the cheapest, he said. But Pulte Home is his favorite for 2006.

Pulte Home is the stock he said would be a good pick for someone who wanted to diversify into housing and realty, in large part because of baby boomers.

This is a demographic that is aging, wants to avoid assisted living, but also wants some of the amenities provided by assisted-living centers. Pulte Home, said Cramer, is the only company addressing the demand for this new type of community.

Newcastle Investment

(NCT)

has a good dividend and good growth, but Cramer said he's concerned because the REIT has been going down and that he doesn't think it has bottomed out.

His favorite REIT is

Federal Realty

(FRT) - Get Report

, which develops community and neighborhood shopping centers.

Even though he has said that

Fannie Mae

(FNM)

bottomed in the low-$40s, he emphasized that he is not a fan of the stock.

Cramer said Fannie will be permanently dogged by congressional interference and that

Accredited Home Lenders

(LEND) - Get Report

is a better buy.

Duke Realty

(DRE) - Get Report

is an interesting stock with a 5% dividend, but Cramer said he'd pass because it is getting into nontraditional asset types and is near its 52-week high.

And he said that

Toll Brothers

(TOL) - Get Report

has bottomed at $35, but its exposure to the Northeast makes it too risky.

Danger Zone

In the "Danger Zone" segment, Cramer warned listeners about

Amazon.com

(AMZN) - Get Report

.

"We just had the big selling season for Amazon and it wasn't that great," he said. "They had a window of opportunity to make a lot of money, but they didn't."

The stock is up to about $45 from $30 in April, and RBC Capital said it will likely come back down to $40 in the near future.

The business model of low prices, customer satisfaction and a convenient interface is not as proprietary as it used to be, the analyst note went on to say, meaning that lots of Web sites can compete on all of those fronts.

Cramer agreed, and said to get out of Amazon.

He also warned against buying

GM

(GM) - Get Report

, despite a spate of upgrades, and

Alcoa

(AA) - Get Report

.

He wrapped up with a few calls, saying that he's a big fan of

Gilead

(GILD) - Get Report

.

While he wouldn't necessarily get rid of

Texas Instruments

(TXN) - Get Report

in favor of Broadcom, he says that Broadcom, Marvell and

Qualcomm

>

(QCOM) - Get Report

are the anointed plays in the sector.

However, Texas Instruments is having an excellent quarter, he said.

Cramer said he would sell Alcoa and buy

Alcan

(AL) - Get Report

, and that he would also think about branching out into

Freeport-McMoRan Copper and Gold

(FCX) - Get Report

or

Southern Copper

(PCU)

.

At the time of publication, Cramer was long Yahoo!, Intel, Qualcomm, St. Joe and 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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