Jim Cramer's Stop Trading! Buy a Lender

Subprime lenders are a solid business right now, because credit losses aren't a concern, Jim Cramer said on CNBC's "Stop Trading" segment Wednesday.

Even so, companies such as Accredited Home Lenders (LEND Quote - Cramer on LEND - Stock Picks) have stumbled as competition has eroded their margins.

"What hurt them was not the credit quality but that Bear (BSC Quote - Cramer on BSC - Stock Picks) moved into the game and Merrill (MER Quote - Cramer on MER - Stock Picks) moved into game," he said. "It's a margin-shred story."

Cramer said investors don't need to worry about defaults or a slowdown in lending because "we're nowhere near the red light on credit."

Switching gears, he was bullish on Devon (DVN Quote - Cramer on DVN - Stock Picks), Ultra Petroleum (UPL Quote - Cramer on UPL - Stock Picks) and Core Labs (CLB Quote - Cramer on CLB - Stock Picks). "If Devon stays here, it will be bought by a European major," perhaps a name like Total (TOT Quote - Cramer on TOT - Stock Picks) or BP (BP Quote - Cramer on BP - Stock Picks), he speculated.

Additionally, Duke Energy (DUK Quote - Cramer on DUK - Stock Picks) is a "nice solid utility that grows," he said.