Jim Cramer's Real Money Radio Recap 6/5

Recap of Jim Cramer's radio show on Monday June 5. Click on a stock ticker for more analysis:

General comment: Oil Threats

Cramer says that two things affect oil prices: supply and demand predictions and geopolitical conflict. He notes that problems between U.S. and Iran, the low output from Iraq, and the threatened supply in Saudia Arabia are problems that are not going to disappear, but which will drive the price of oil higher. However, oil is currently down, and Cramer recommends Baker Hughes (BHI) as having reported the best quarter of any other driller. He also suggested looking into America Movil (AMX) in Peru now that Andy Garcia, who is Wall-Street friendly, has defeated the Left.

Patience is an Investment Virtue

Cramer's apparently simple slogan "Buy low, sell high" might not be so easy to carry out in practice, especially with the current dramatic fluctuation in the market. Cramer suggests practicing patience with stocks, particularly natural gas, which is currently low because of "skittishness." Cramer suggests "cultivating" Chesapeake Energy (CHK), and praises its management and shrewd investments: "Plant it now, harvest it in the fall," he said. Cramer also sees an increased demand for big-screen televisions and singles out Circuit City (CC) as a more successful vendor of large-screen TVs than competitors Best Buy (BBY) and Costco (COST). Cramer also suggests taking a look at Apple (AAPL), which is poised to introduce new products this fall.

Bullish calls:

ConocoPhillips (COP): Cramer singles COP out as the cheapest oil play, which is growing at 8.5%, but currently sells at only six times earnings. He says that he is willing to pay 17 times earnings for this stock, and is considering trading Occidental Petroleum (OXY) for COP.
Starbucks (SBUX): In spite of the fact that Starbucks seems to be flatlining, Cramer is still bullish, citing its comparable-store sales, good earnings, and the fact that it wants 20% of its business to be in China.
Valero (VLO): Cramer likes Valero because it is the largest refinery in the midst of a national shortage, it trades 7% earnings on 7 times growth, and is an inexpensive stock.
Motorola (MOT): Cramer believes that Motorola "has been in the penalty box for too long" and will redeem itself with a new line of products.
Schering-Plough (SGP): The latest news is that GlaxoSmithKline (GSK) is planning to buy Pfizer's (PFE) over-the-counter products division, and that Schering-Plough (SGP) wants to get involved. Cramer pegs SGP as the winner in the sale, because it has better management than GSK and more of an upside.

Neutral/Bearish calls:

IBM (IBM): Cramer says that IBM's numbers are too muddled, which indicates poor earnings.
Marvell (MRVL): Although this company is performing well, semiconductors are not thriving. Cramer predicts that Texas Instruments' (TXN) earnings report will be positive, but that growth may be slow in the future, which will have a negative impact on Marvell.
Sears (SHLD): Although Cramer has been bullish on Sears and praises CEO, Eddie Lampert, he says that the stock is too high now, and that investors should wait for it to come down before buying more.
Finisar (FNSR): Although a good earnings report could indicate an upswing, Cramer recommends caution with Finisar. Ciena's (CIEN) success story is likely to make Finisar's gain pale in comparison.
Foster Wheeler (FWLT): Cramer owns this stock, which tends to fluctuate. It has recently jumped six points, and Cramer suggests waiting for it to decrease before purchasing more.

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