Google's ( GOOG) stock is cheap, and the company is growing, Jim Cramer told a caller on his
"RealMoney" radio show Wednesday. He said to buy it on the way down and put it away, rather than giving up and running away from it. "Google is the real deal," he said. Cramer next turned to General Motors ( GM), where investor Kirk Kerkorian and his associate Jerome York, who is a GM board member, have been influencing the company to merge with Nissan and Renault, Cramer told a caller. He said he believes GM will merge, and the move will subsequently make it pre-eminent against its rival Toyota ( TM). He recommended staying with the stock and said it is a winner, not a loser. Cramer said he is blown away that Home Depot ( HD) keeps going down. While the stock's decline might be because people are upset about Home Depot CEO and Chairman Bob Nardelli's paycheck, Cramer said Nardelli is the one who has made it a better company. It is undoubtedly a better place to shop than it was three years ago, and Cramer said it's one of the cheapest retailers he knows, adding that the company has also turned around its balance sheet. At $35, Cramer said Home Depot is for him. The options backdating issue that Marvell Technology ( MRVL) is dealing with is negative for the company's stock, Cramer told another caller. Moreover, he said there has been much delay in the gaming-products business, and Marvell has a high multiple. Cramer said he is concerned about the stock and advised staying away until it comes in more. Under Armour ( UARM) is an expensive stock that Cramer said he happens to like. But he said although the company is "smoking" -- everybody loves its products and it has taken Nike ( NKE) by storm -- that's the company, not the stock.
The stock sells at 64 times next year's earnings, and Cramer said he cautions that paying more than twice the growth rate is dangerous. The stock is a point off its high and he is nervous it could drop a couple of points. He said he can't back down from the fact that it's expensive. Cramer advised another caller to buy just 10 out of 40 potential shares now of Sears Holdings ( SHLD), a stock which he owns for his charitable trust,
Action Alerts PLUS, adding that he believes the company is doing fine. He told another caller he believes KB Home ( KBH) is a buy. He said it's the best-managed homebuilder in country, and said its price has been cut in half since last year. Although people believe the decline in the market is attributable to North Korea firing off a few missiles, this is not true, Cramer said. The real reason it is declining is because the market has become overbought, Cramer said. Cramer asked his viewers to cogitate how an event overseas could affect the price of IBM ( IBM ) or make Procter & Gamble ( PG) too expensive. There are many people in the media who know a lot about world news, but not enough about financial news, he said. And these people are very quick to link overseas events to the market's decline. This is "general Wall Street gibberish," Cramer said. The No. 1 reason the market is going down is because it was up too much, he said. It had a huge run in which market players got too greedy and took stocks up too high. Now they have to correct it, Cramer said. The lesson to be learned here is that when the market drops like this because of a news event, take advantage of the panic -- when other people start selling. Start picking up stocks that get cheaper, Cramer recommended.