It's time to get out of

Urban Outfitters

(URBN) - Get Report

, Jim Cramer said on his

"RealMoney" radio show Friday.

In this kind of situation it's advised to do your homework and research the company, he said. Although the company may appear to look good to you, it may not be performing well across the board.

Fifteen months ago, Cramer thought Urban Outfitters was the best retailer in its industry.

The company, which operates under three divisions (Urban outfitters, Free People and Anthropologie) didn't seem to be performing so well last summer. The stock dropped, and Cramer viewed the company as a bargain, he said.

But after doing storewide research, it was revealed that the company had an inventory problem, where they were not selling enough clothes in time for a new season.

In short, the company had high inventory, the wrong merchandise and sales were down, Cramer said. Now the stock has fallen, but along with it, the company's fundamentals have fallen apart. Even though the company's stock is at $18, it is a sin to buy when the company is awful, he said.

"We don't know what it is, but something is wrong with Urban Outfitters," Cramer said. "You need to get out of this stock."

Cramer advised his listeners not to rely on news too much. While news headlines keep reporting that Bill Gates has taken a lesser stance on

Microsoft

(MSFT) - Get Report

, which Cramer owns for his charitable trust,

Action Alerts PLUS, and is spending more time giving his money away, this is not the real news, he said.

The reality is that CEO Steve Ballmer, who has already been running Microsoft for some time now, has not done anything special at the company. The stock is at its five-year low. The real story is that this stock is not doing well, and the company is not coming out with new products.

Cramer said he likes

Apple Computer

(AAPL) - Get Report

for the reason that the company keeps up with up-to-date systems.

The press also is too focused on old tech, Cramer said. Both

Intel

(INTC) - Get Report

and

Cisco

(CSCO) - Get Report

are old tech companies.

But what about

Network Appliance

(NTAP) - Get Report

, which Cramer owns for his charitable trust,

Action Alerts PLUS and

Palm

(PALM)

? he asked.

These are companies with new products that the media should focus on, he said.

To see the most recent edition of The RealMoney Radio Recap in its entirety, please click here. This recap is published every day around 3 p.m. ET.

At the time of publication, Cramer was long Microsoft and Network Appliance.

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

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

clicking here.

TheStreet.com has a revenue-sharing relationship with Traders' Library under which it receives a portion of the revenue from Traders' Library purchases by customers directed there from TheStreet.com.