Skip to main content
Publish date:

RealMoney Radio: Whole Foods in Pieces

Cramer says that it's not too late to sell the organic food company.

Halloween may have been a few days ago, but there are a couple of "scary and expensive" stocks out there that have been "clocked," Jim Cramer said on his

"RealMoney" radio show Friday.

The first one is

Whole Foods


, he said.

"People who own Whole Foods are being killed," Cramer said.

The stock was a favorite for a long time because it had double-digit growth, but this is no longer the case.

The company "just got it wrong," he said. "This is a bad situation and is specific to Whole Foods," not the entire organic foods industry.

There might be a bounce in Whole Foods on Monday, and people must sell into that bounce, Cramer advised. "It is not too late to sell it."

The other scary stock is



, which Cramer owns for his charitable trust,

Action Alerts PLUS, Cramer said.

Although it was a thought that Yahoo! could be taken over, right now at $26, not many companies can afford to buy this company, he said.

TheStreet Recommends

"Whole Foods is no good, and the Yahoo! speculation is not right," Cramer said.

A diverse portfolio can help market players protect themselves from market slides, and the same applies to companies, he said. That is, a company that is diverse in the products it manufactures, is more protected against the market, compared with one that focuses on a single sector.

For example,

Fortune Brands


is a "gigantic play on housing" and thus, should be "getting killed," but it's not because Fortune Brands recently bought a bunch of liquor companies, Cramer said.

"It saved them, and now the stock is going higher," he said. "It's not going to stop here as the company is diversified."

On the other hand,


(IR) - Get Ingersoll Rand Inc. Report


American Standard


are not diversified enough, Cramer said.

Companies need to "wake up" and understand that they can't be levered to a single industry such as housing, he stressed.

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 Yahoo!.

Jim 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. 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. 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