Jim Cramer's Stop Trading: Avoid Potash, Mosaic; Buy Rite Aid, Bob Evans

NEW YORK (TheStreet) -- TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, took a look at shares of Potash (POT), which were downgraded to hold from buy at J.P. Morgan. 

On CNBC's "Cramer's Stop Trading" segment, Cramer acknowledged that the analyst did not lower his price target on shares of Potash, but suggested that this year's "bountiful harvest" would be a negative. 

Prices of corn, wheat and soy are all "getting killed," while other commodities like natural gas are at six-month lows. Many also believe that gas prices have already peaked for this summer, he said. 

Yahoo!'s Alibaba Cash Could Trigger a Buying Binge in Tech

5 Biggest Amusement Park Chains of Summer 2014

Could Walmart Be Sitting On Another Disappointing Quarter?

The Dirty Little Secret of Money Managers: Underperformance Anxiety

Cramer suggested investors avoid Potash and Mosaic (MOS) at current levels, as input costs for crops continue to drop. 

On a side note, he also mentioned that he likes Rite-Aid (RAD) and Bob Evans Farms (BOBE), the latter of which is "dramatically undervalued." 

Cramer also acknowledged General Mills' (GIS) "terrific dividend" and strong cash flow, while pointing out how well the stock bounced back following its analyst meeting. 

-- Written by Bret Kenwell in Petoskey, Mich.

At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.

More from Opinion

AAP Exclusive: Cramer Says The President is No Longer on the Side of the Bulls

AAP Exclusive: Cramer Says The President is No Longer on the Side of the Bulls

Why It Makes Perfect Sense for Netflix and Amazon to Buy Up Movie Theaters

Why It Makes Perfect Sense for Netflix and Amazon to Buy Up Movie Theaters

2 More Reasons to Sell All Your Stocks and Run Away

2 More Reasons to Sell All Your Stocks and Run Away

Sean Hannity's Link to Trump Lawyer Raises Questions: Doug Kass Insider

Sean Hannity's Link to Trump Lawyer Raises Questions: Doug Kass Insider

Netflix Blowout Earnings Remind Investors of One Thing: This Company Is a Beast

Netflix Blowout Earnings Remind Investors of One Thing: This Company Is a Beast