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Recap of Jim Cramer's radio show on Wednesday August 2.Click on a stock ticker for more analysis:

The Best Defense: Procter & Gamble (NYSE:PG), PepsiCo (NYSE:PEP) - Cramer says that PG is the most defensive stock he knows, even more so than PEP, and he predicts that it should climb from $58.55 to at least $60 by next Friday.

It's Mel's Move: Sirius Satellite Radio's (NASDAQ:SIRI), XM Satellite Radio (XMSR) - Cramer thinks that Sirius Satellite CEO, Mel Karmazin, should make a move and buy XM Satellite fast before it starts bouncing back. He believes that the war between the companies is doing neither one any good, and that a merger will mean more earnings for Sirius, an opportunity to get into retail and a potential leap from $4 to $8.

Oil and Retail: Valero Energy (NYSE:VLO) and Sears (NASDAQ:SHLD) - Valero reported great numbers, but was brought down. However, Cramer is not concerned about this, because it is a good company with a solid buyback strategy. He suggests buying it, because he believes that it is on its way up. On another note, Cramer likes Sears and so does RealMoney.com's Helen Meisler, and the two rarely agree on the same stock. Cramer says this is a sign SHLD is an excellent investment.

Picks for Instability: Yamana Gold (NYSE:AUY), ConocoPhillips (NYSE:COP), Chevron (NYSE:CVX), Halliburton (NYSE:HAL) - A caller asked Cramer for suggestions on how to invest if there are further problems in the Middle East, and Cramer suggested AUY, COP, CVX and HAL.

Bullish calls:

Apple (NASDAQ:AAPL) and Electronic Arts (ERTS): Cramer predicts an upswing for these companies in six months. Since Microsoft (NASDAQ:MSFT) has yet to make a clear statement about the timing of the Vista release, the threat of competition is delayed, and AAPL and ERTS should do well in back-to-school sales.
J.C.Penney (NYSE:JCP): Cramer suggests swapping out of Saks (NYSE:SKS) and into JCP.
Halliburton (HAL): Cramer says that the Merrill Lynch analyst who downgraded HAL was wrong, and believes that natural gas will be going up, that HAL has a great infrastucture business, and that it should climb from $34 to $39.
Glaxosmithkline (NYSE:GSK): GSK's problems are temporary, according to Cramer, who would pick it up cheap, because he believes in the company.

Neutral/Bearish calls:

Cendant (CD): Cramer would sell this stock, although it is down.
Chico's (NYSE:CHS): Cramer is shocked that this stock fell 50%.
Dow Chemical (NYSE:DOW): This company has very high raw costs, and Cramer admits that he made a mistake about this stock.

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

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Source: Jim Cramer's Real Money Radio Recap 08/02