Jim Cramer's Stop Trading! Copper Collapse

Stock quotes in this article: GOOG , TOL , CTX , PCU  

Anyone interested in going long copper should save their hard-earned cash and look somewhere else, Jim Cramer said Thursday on CNBC's Stop Trading! segment.

"Copper's a fiasco here," Cramer said. "I don't want anything to do with copper."

The problem, he explained, is one of massive supply and no demand. Homebuilders like Toll Brothers (TOL Quote) and Centex (CTX Quote) have huge inventories, while Chile has ramped up production, leading to an imbalance that will pressure prices, he said.

In short, copper is headed lower, he believes. As a result, Cramer indicated that he would be a seller of Southern Copper (PCU Quote) at these levels.

Elsewhere, Cramer said he believed the casino group was undervalued, and he advised investors that they would be better off considering companies building in Macau as opposed to those focusing on U.S. expansion.

Finally, he said Google (GOOG Quote), which he called a "data-point stock," would likely continue drifting until its next quarterly report.

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At the time of publication, Cramer had no positions in stocks mentioned.

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS. Listen to Cramer's RealMoney Radio show on your computer; just click here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click here to get his second book, "You Got Screwed!" and click here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by clicking here.

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