Return of Radio

"News flash: Radio is not dead... and it might be better than ever," Cramer said. Thanks to a recent Supreme Court case allowing unlimited political advertising by corporations, this year's election season may be the best period in radio's history, he added.

Making matters even better, Cramer said most radio stocks have either been acquired, or gone belly up, leaving only Entercom ( ETM), as the largest publicly traded radio company and indeed, the last man standing.

Entercom operates in 23 markets across the country, making it the perfect choice for corporations to express their political views this November. The company derives 78% of its revenue from local radio and has enjoyed a 50% spike in its digital advertising revenue.

Business is clearly coming back, said Cramer, thanks to a recovering economy and rising ad rates. This bodes well for Entercom, which has reduced its debt by $100 million and trimmed its operating expenses by a hefty 8%.

Cramer said Entercom has clearly already had a massive run, up 855% from its low of just $1.17 a share. But even at current levels, Cramer noted that Entercom trades at just 8.6 times its 2011 earnings, despite its 8.6% long-term growth rate and monster cash flow.

Cramer said Entercom is the only way to play the coming boom in radio, but with no short term catalysts propelling the stock higher, he advised waiting for a pullback before buying in.

Am I Diversified?

Cramer played "Am I Diversified" with callers to see if their portfolios have what it takes. The first caller's portfolio included: Bank of America ( BAC), Fluor ( FLR), Johnson Controls ( JCI), Skyworks Solutions ( SWKS) and Time Warner ( TWX).

Cramer said this portfolio was well played.

The second caller's top holdings included Exxon-Mobil ( XOM), Consolidated Edison ( ED), Apple ( AAPL), AT&T ( T) and Verizon ( VZ).

Cramer said he'd sell AT&T and pick up a health care company to fix this portfolio.

The third caller had Prudential ( PRU), Cooper Industries ( CBE), Mosaic ( MOS), DirecTV ( DTV) and Warner Chilcott ( WCRX) as their top five stocks.

Cramer said this portfolio was also well played.

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