The retail sector is a "multilayered animal" that market players should watch with a "careful eye," Jim Cramer said on his
"RealMoney" radio show Tuesday.
Just because a retailer issues good numbers, it doesn't mean that it should perform well, he said.
Case in point is the largest retailer in America,
, which "has blinked," Cramer said.
The company produced a better-than expected quarter this morning because it decided to stop cutting prices in an effort to bring the earnings in, he said. And now all the retailers are going up.
, which Cramer owns for his charitable trust,
Action Alerts PLUS, was challenged by Wal-Mart's price cutting.
But now everything from it to
should be going up as Wal-Mart is not cutting its prices anymore.
"Morons will buy Wal-Mart today," he said. But Cramer urged people to reconsider getting into Wal-Mart, as he believes that there is nothing good cooking there.
The drug stocks are not people's favorites, but this group might put in a bottom soon, Cramer told listeners. "You will know when we get a bottom; the stocks will open up and stay up."
But as long as the current pattern prevails, where the stocks open up but then go down, he advised market players to "stay away."
However, the drug stocks should see a bottom any day now, Cramer said. "We are close."
On Tuesday morning there was an article in
The Wall Street Journal
issuing a one-time special dividend where it focused on CEO Steve Wynn paying himself $147 million, Cramer said.
Cramer believes that people should not care what Wynn is making because market players who own the stock are benefiting from the dividend as well. And that's all that matters, he said.
"The media makes a judgment every time an executive gets paid well, and that judgment is that the pay is excessive," Cramer said.
But this is "nonsense," he said. People should be happy to pay executives who make them money.
Cramer said he also keeps hearing about backdating options, excessive dividends and big payouts from private equity, but he lumps these issues as the fees market players need to pay to make "big money."
After all, "this is Wall Street, and making money is all that matters."
Switching tunes, Cramer said a stock which he has previously recommended,
, just got a "huge contract" to provide a central control rail center to supervise terrorism in New York City subways,.
NICE can still be bought here, he said.
has come out with a product called Zune to compete against
iPod, Cramer said.
However, Microsoft does not seem to understand that that the iPod business is not like the Nintendo and
business, he said.
The iPod is a franchise that is not going anywhere anytime soon, Cramer continued. Moreover, the Zune is bulkier and heavier than the iPod.
"Apple will win this duel," he said.
Another duel going on is the one between
for wrinkle-free skin, Cramer went on to say.
This duel, however, is one where both companies should win, he said.
"Both companies' products are fantastic," Cramer said. "I would own either stock."
is working off its inventory problem, and at $21 it's a buy, Cramer told a caller.
Responding to his next caller, Cramer said that
may go down to $40 as it is options backdating week.
However, the company is doing very well, he said. McDonald's may have a problem dealing with obesity, which is less a fast-food problem than a snack problem and why Cramer believes this is more of an issue for
McDonald's was recently trading at $41.03.
Cramer told another caller that he bought
for his charitable trust,
Action Alerts PLUS, at the $32 level, and when it went to $40, he "trimmed" down a bit. Then the stock went down.
"There is something very wrong at Yahoo!," Cramer said. But his hope is that the company will unveil its search engine soon.
It is not growing as much as
, and Cramer said he doesn't trust it. If Yahoo! went to $29, $30, Cramer said he would recommend selling it.
Yahoo! was recently trading at $27.18.
When a caller asked about
, he advised sticking with it as he believes "it is a great long-term story."
"There is a definite move towards owning restaurant stocks," Cramer said.
After rallying to $68 from its bottom in August, Panera has had its pullback and is now, at $60, ready to ramp, he said.
Though Cramer told one caller it's time to sell
, he told another caller he has become positive on
After reading a report by Prudential's Howard Penney who suggested looking at Krispy Kreme as a brand new company, Cramer switched his position on the stock.
He told the caller to read the report so that the caller could understand his decision to go positive on the stock.
Although a lot of people are worried about
, Cramer told a caller he believes that the "plummet in the stock is over."
"You are in OK shape," Cramer said. "Best Buy is the best hard-good retailer in the country."
At the time of publication, Cramer was long Yahoo! and Sears Holdings.
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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