'RealMoney' Radio Recap: Bullish on Bear Stearns

Lehman Brothers' (LEH Quote) big quarter means it's time to buy Bear Stearns (BSC Quote), James Cramer said on his "RealMoney" radio show Wednesday.

Like Lehman, Bear Stearns spent some time in the "wilderness" in the 1990s, when it found itself on the outside looking in on a hot tech IPO and equity-underwriting market, Cramer said. He said the firms reacted by getting into markets nobody else wanted, Lehman in fixed income and natural resources and Bear in mortgage-backed securities and prime brokerage. Those areas are among the hottest right now, said Cramer.

"I think they'll beat the expectations, and I think you should be in it," said Cramer, adding that if Bear happened to go down after the report, that would be a "gift."

Commenting on Google (GOOG Quote), Cramer said he is seeing people sell other stocks to buy Google, which is expected to price its stock offering after the close. Cramer is sticking with his $350 price target, based on expected earnings of $7 in 2006. At roughly $300, said Cramer, "I think you've got a good buy." Google shares fell $8 and change to $303.

A caller asked about Montpelier Re (MRH Quote), which has fallen about 25% in the last week. Cramer said MRH is the "class of the reinsurance companies." The company had underwritten a "lot" of insurance in the Gulf Coast area and has announced losses of $450 million to $675 million. But Cramer said "these guys are pros" and that the stock is "cheap." After Hurricane Andrew, insurance rates went up "dramatically," said Cramer, and he expects no different this time.

At $24, you're "getting all of the bad and none of the good," said Cramer. If not for his trading restrictions which prevent him from buying the stock at this time, he would "back up the truck" and buy. Montpelier dropped 91 cents to $24.86.