Jim Cramer's Real Money Radio Recap 7/5

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

Think Local: The Tale of Summit Bank and Cullen/Frost (CFR) - Interest rate hiking seems to be a current pastime of the Fed, and this practice has had a devastating affect on banks. Although he believes that JPMorgan (JPM) and Wells Fargo (WFC) will weather the storm, Cramer recommends looking for regional banks that might get picked up by giants. Recently, Summit Bank was purchased by Cullen/Frost (CFR), and it is now at a 25% premium from last week.

Against the Grain: Looking for Anomalies ConocoPhillips (COP), McGraw-Hill (MHP), PepsiCo (PEP), MasterCard (MA) - Cramer suggests looking for anomalies in the current environment. He suggests COP, which is up 90 cents on a bad day, and MHP, which tends to do well even when the rest of the magazine business is sluggish. Other good anomalies are PEP and MA, which were recently upgraded by Prudential. "When there is a newfound recommendation or an upgrade, that's where the safety is on a down day," he said, and predicts that stock s like these rise in a rally.

Tenuous Connection - Cramer comments that too many people in the media jump to link a weak market to a global event, like North Korea's firing off some missiles. He dismisses this as "general Wall Street gibberish," asking how how a bit of provocative activity in Asia makes stocks like IBM (IBM) and Procter & Gamble (PG) too expensive. He blames market players who sent the market up too high and primed it for a fall rather than world events, and suggests taking advantage of the panic to pick up cheap stocks which others are selling.

Bullish calls:

Google (GOOG): Cramer suggests buying and hanging onto this stock, since he expects it to rise: "Google is the real deal."
General Motors (GM): Cramer sees a merger with Nissan (NSANY) and Renault the horizon, and such a move will help GM trounce its long-time rival, Toyota (TM).
Home Depot (HD): This stock is way down, and Cramer is incredulous. The only explanation he can come up with is that investors are annoyed with the hefty paychecks given out to the chairman and the CEO, Bob Nardelli. However, Cramer believes that Nardelli's high pay is well-deserved, since he has made incredible improvements in Home Depot stores. Cramer would buy this stock at $35, since its products are inexpensive and the company's balance sheet is clean.
Sears Holdings (SHLD): Cramer believes that this stock is doing well, but recommended that a caller buy just 10 out of 40 shares of it right now.

Neutral/Bearish calls:

Marvell Technology (MRVL): There are many reasons Cramer is wary of this stock, including its involvement in the backdating scandal, the delay in the gaming products business and the company's high multiple.
Under Armour (UARM): Although this is a costly stock, Cramer likes it because its products are popular. UARM sells at 64 times earnings, and Cramer believes that paying double growth rate should be avoided. He sees a possible fall for the stock, and recommends picking it up when it's down.
KB Home (KBH): Cramer likes this homebuilder, and the stock has gone down by half in the past year.

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