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"Now we see what this housing sector is made of," said Jim Cramer on his

"RealMoney" radio show Tuesday, as

Toll Brothers

(TOL) - Get Free Report

, which Cramer said is best of breed in the housing sector, cut its sales forecast for 2006.

Some things never change, said Cramer. When interest rates go higher, the housing market suffers, he said. Although this time around the first interest rate hikes didn't matter as much because interest rates were so low, the last three hikes -- along with higher gasoline prices -- have really hurt, said Cramer.

Cramer believes that Toll Brothers' stock could go as low as $28 and that other homebuilders' stocks will suffer as well. Toll Brothers recently traded at $34.88 Tuesday afternoon.

There was a season to own Toll Brothers, said Cramer. Now that season is over.

Danger Zone

Cramer's "Danger Zone" stock Tuesday was

Lamperd Less Lethal


. The company is being touted by an over-the-counter newsletter as the next



, he said.

But, Lamperd Less Lethal is so bad it makes Taser, which has been a "multiple danger zone" stock, look like

Procter & Gamble

(PG) - Get Free Report

, he said.

I'm "totally, totally repulsed by this," said Cramer.

Sector Spotlight

Cramer is bullish on gold even though gold doesn't historically do well when the

Federal Reserve

is raising interest rates. But, demand for the actual metal for industrial and luxury uses from China and India mean gold will work, he said.

Cramer likes

Anglo American

( AAUK), a worldwide mining company with gold, copper and iron. Anglo American is the largest holder of De Beers, the diamond mining company, he said.

Cramer is not a fan of

Hecla Mining

(HL) - Get Free Report

, his "least favorite" among gold stocks.

Cramer's Callers

In response to a question about

Pike Electric

( PEC), Cramer said if he had a large profit in the stock, he would probably sell half or two-thirds of the position before its earnings report Thursday and let the rest run. Even though he likes the stock, "no one every got hurt taking a profit," he said.


(GOOG) - Get Free Report

is in "digest mode," said Cramer. It's normal to expect a little pullback after the run the stock has had, he said.

Cramer, who has a $450 price target on Google, said the next 50 points won't happen overnight unless it gets added to the

S&P 500

Tuesday evening, which he doesn't believe will happen. Even though Google pulled back a little Tuesday, Cramer believes that Wednesday will provide a better opportunity to buy the stock. Google was recently down 1.18% to $390.37 late Tuesday.

Cramer likes


(CCJ) - Get Free Report

as a play on worldwide uranium use for nuclear power but not as a play on nuclear power in the U.S. Cramer said the political and regulatory environment in the U.S. is not conducive to building new nuclear power plants.

Now is a good time to initiate a position in



, Cramer said. He would also look to buy

Whole Foods Market

( WFMI) if the stock sells off after its earnings report Wednesday.

He would not be tempted to buy


(CSCO) - Get Free Report

on a possible pullback after its earnings report Wednesday.

Cramer applauds



consideration of a reverse stock split. The reverse split will help make earnings growth more visible, he said.


Capstone Turbine

(CPST) - Get Free Report

, Cramer said a "giant equity offering" killed the story. He is reserving judgment until he can find out more information.

Johnson & Johnson

(JNJ) - Get Free Report

is being pulled down buy its planned acquisition of


( GDT), said Cramer. J&J is a great company, though, that one rarely gets the opportunity to buy cheaply, he said. Now is the time.

Finally, Cramer said the trade out of oil and into tech stocks is right. It's OK to have some exposure to oil, but the trade in oil is over. Oil should not be more than 10% of your portfolio, he said.

At the time of publication, Cramer was long Anglo American and Procter & Gamble.

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

Action Alerts PLUS. While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by

clicking here. Listen to Cramer's RealMoney Radio show on your computer; just click

here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click

here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click

here to get his second book, "You Got Screwed!" and click

here to order Cramer's autobiography, "Confessions of a Street Addict."