RealMoney Radio Recap: Fear and Loathing

If you're a fan of scary movies then the current market might remind you of Amityville Horror, Jim Cramer said on his "RealMoney" radio show Thursday.

Everything in tech is a disaster, and gold is up, which is a sign that people are scared, he said. Cramer said although market players may have the temptation to sell everything they have and get out of the market in this type of environment, this is not the right thing to do.

Eight years ago, when the market was really low, Cramer thought it would be best to get out. But shortly after, the market bottomed and then rallied for two-and-a-half years, he said.

You have to remain cool and calm in this situation, he advised.

On Thursday, a bunch of companies were downgraded, including Wal-Mart ( WMT) and Disney ( DIS), he said, adding that natural gas drillers were downgraded as well.

If people want some relief, Cramer said they should go to cereal and soup stocks, such as Kellogg ( K) Campbell Soup ( CPB) and General Mills ( GIS).

People need to look for stocks that have been hammered but still represent companies which are fundamentally good, he said.

"Whatever you do, let's not all get out," he said, adding it could be as wrong as it was in 1998.

Leaving Home Depot

This week's readers' pick, Home Depot ( HD), doesn't have the same room to grow as its rival Lowe's ( LOW), Cramer said.

Readers of TheStreet.com chose Home Depot as the stock for Cramer to discuss.

Although the company's management is not that good, Cramer said Home Depot was falling apart before the company's CEO Robert Nardelli came in.

As cheap as Home Depot is, Cramer said he believes Lowe's is better.

Lowe's has growth rates as far as the eye can see, he said. While Home Depot has stores everywhere, Lowe's has room to expand.

He said he would pick up Lowe's and pass on Home Depot.

While Electronic Arts ( ERTS) and GameStop ( GME) are performing well on Thursday, he said he can't be too bullish on them.

He advised his listeners to let a little of them go in this upswing and be careful with the stocks. He called their price increase an opportunity to lighten up on them.

Why Not Weyerhaeuser?

Weyerhaeuser ( WY) is the biggest and best lumber company in the country, Jim Cramer told a caller.

It is at or near its 52-week low because the country is experiencing a housing glut, he said, adding that if we have a severe hurricane season that could change.

However, Weyerhaeuser has one saving grace, Cramer said -- that it has a dividend which has a 4% yield. The stock has come down a lot, and he said he would not be ashamed or scared to buy Weyerhaeuser right now.

Cramer believes Nabors ( NBR), which he owns for his charitable trust, Action Alerts PLUS, is finished going down and advised a caller not to lose heart. Business is good and natural gas is not going lower, he said.

"It is way too cheap compared to other drillers," he said.

Amazon.com ( AMZN) is too expensive, Cramer told a listener. He said he won't own it because it's too likely to go down.

Bancolombia ( CIB) is the best bank in Colombia, which is a country that is pro-U.S., he said.

However, the problem is that this market is so risk-adverse, that they are not willing to invest in a company that is located in Colombia -- even if it's good.

Bancolombia could go back down to $20 before it rallies it again, he said. It could go three points down and five points up, he said. It was recently at $23.45.

"We don't want Ford ( F)," Cramer told a caller who asked about it.

Instead, he said General Motors ( GM) is way ahead of Ford in terms of restructuring and has made its balance sheet better.

He recommended swapping out of Ford and into GM.

CB Richard Ellis Group ( CBG) is a huge commercial real estate company, which is a sector that is en fuego right now, Cramer said.

That being said, Cramer believes the company has a structural problem - that it is run by a bunch of salespeople, he said.

When a caller inquired about Norfolk Southern ( NSC), which is up 58% and seven points from its high, he advised the caller to wait until the stock goes to $47 before buying more. Norfolk Southern was recently at $50.33.

He said he would be a holder, not a buyer, of the stock right now and told the caller he was in good shape with this play.

Cramer called Dynegy ( DYN) a best-of-breed power generation company and told a listener to stick with it. He believes it is a $5 stock that could work its way to $7.

Although Sirius Satellite Radio ( SIRI) has met projections and is much better company than it was, Cramer said because of XM Satellite Radio ( XMSR), there is too much competition in the area unless the two companies merge.

Sirius is too speculative of a play, but Cramer said if he had to pick one from the two, he would pick Sirius.

Here's your chance to pick the stock you'd like me to feature on my radio show July 20:
Ford
Forest Labs
PepsiCo
Marriott
Activision
SAP

REMEMBER to listen in on Thursday for my take on the stock that wins this poll!

At the time of publication, Cramer was long Nabors.

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.

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