Jim Cramer's Real Money Radio Recap 5/30

Recap of Jim Cramer's radio show on Wednesday May 24. Click on a stock ticker for more analysis:

General comment: Roller Coaster Ride

Cramer predicted a wild ride for the market in the runup to the June 28th meeting of the Federal Reserve. He credited the steep rise last week to the fact that stocks have been sold off so much, and that they had to unwind and move higher, like coiled springs. The selloff in emerging markets such as Brazil and India also had a ripple effect on stocks here.

The hard hit taken by Wal-Mart (WMT) and General Motors (GM) had a general effect on the market, although fundamentals did not change. Cramer agrees with a Deutsche Bank analyst who suggested holding on to GM because of rising gasoline prices. Wal-Mart has declined from its stellar performance last month, and Cramer notes that when a retail giant like Wal-Mart reports sluggish sales, analysts worry about a general slowdown.

Cramer suggests that the only thing that will prevent dizziness during this roller coaster ride is to have a diversified portfolio.

Rising Oil

Cramer cites many reasons to expect oil to rise, including the possibility that Iran, the world's fourth largest oil producer, may halt shipping to the US, impending hurricane season, and instability in Nigeria. Although there is some production capacity offline in the Gulf of Mexico, and OPEC has indicated that it will keep output at its current levels, Venezuela seems poised for a cutback. Cramer is skeptical concerning claims of sufficient supply; "When they say that inventory levels are high, it's because we don't have a lot of storage."

Goldman Sachs (GS) and Richard Kinder, chief executive at the energy infrastructure provider Kinder Morgan (KMI), predict a rise in oil. Kinder believes that oil will reach or surpass $100 a barrel, and has taken his company private. Cramer suggests holding on to KMI.

Change of the Guard at the Treasury

While Cramer feels that Treasury Secretary Snow is a "terrific avuncular guy," he was never the "mover and the operator" that the Treasury needed. Cramer is optimistic about the incoming treasury secretary, Goldman Sachs' CEO Hank Paulson, who is charismatic and has experience on the international scene.

Bullish calls:

Boeing (BA): Cramer calls BA a "quintessential selloff stock," because it has reported a fantastic quarter and has been up when other stocks are down. He says that an investor who has a full position in the stock should not sell it outright, because its fundamentals are solid. He suggests resisting pressure and staying with the stock.

Halliburton (HAL): Cramer says that this stock is "hideously undervalued" because its Kellogg Brown & Root subsidiary is not factored in to the stock price. However, the subsidiary is being spun out by its "pro-shareholder management." HAL reported an excellent quarter, and Cramer says that it will be a great deal if it falls from $90 to $73.

Hershey (HSY): Cramer praised Hershey as a well-run company and a good cyclical stock which could go higher in a slowdown.

Neutral/Bearish calls:

Gap (GPS): Although Gap is cheap, Cramer doesn't feel that it is a good buy, since he doesn't see significant growth. However, according to one analyst whom Cramer holds in esteem, the stock could turn around, so Cramer suggests that those who already own the stock should hang on to it for a while.

Williams Companies (WMB): Cramer warns against this natural gas pipeline company, because it has a lot of debt and will have a difficult time going private.

Circuit City(CC): CC is the number 2 big-box electronics retailer after Big Buy (BBY), which has a full inventory. He suggested watching CC, which is just a few points short of a fresh high, and to be ready to sell.

More: Cramer's latest stock picks, including: Mad Money Recap, Lightening Round, Stop Trading and his Radio Show.