Jim Cramer's Stop Trading! Buy Costco
Costco (COST) is a buy for reasons beyond its real estate position, Jim Cramer said Tuesday on CNBC's Stop Trading! segment.
Cramer lauded a Piper Jaffray upgrade of the warehouse retailer that focuses on the company's ownership of most of its big-box stores. But while the call was "really good," Cramer adds that a better reason to buy Costco is CEO Jim Sinegal's unparalleled skill as a merchant. Cramer also likes St. Jude (STJ), saying the fundamentals have bottomed in the implantable cardiac device market and that "the bad news is in these stocks." Cramer said he would buy both call options and common shares in St. Jude, which he sees as the most natural takeover candidate in its peer group, which also includes Boston Scientific (BSX) and Medtronic (MDT). Cramer would sell the homebuilders into Tuesday's better-than-expected home starts report. Cramer said more houses on the market means bad news for this group, which has no choice but to build even when consumers aren't eager to buy, given the homebuilders' heavy land holdings.>To order reprints of this article, click here: ReprintsTheStreet Premium Services For Personal Service: 877-471-2967
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