Exit Fortune Brands

What do you do if Johnnie Walker's slowing and Merillat cabinets aren't moving? I think you sell Fortune Brands (FO - commentary - Cramer's Take).

Both Diageo (DEO - commentary - Cramer's Take), the liquor king, and Masco (MAS - commentary - Cramer's Take), the cabinet and plumbing king, reported earnings. While Diageo didn't deliver terrible numbers and boosted its already bountiful dividend, its outlook was horrible.

Masco all around was just plain horrible. Huge quarterly dividend cut to 7.5 cents from 23.5 cents, miserable outlook and a sense that things are spiraling as housing starts get slashed to ribbons.

Hmm. Kitchen, bath and cabinet. What's like that? Fortune Brands. Now the company already has delivered a miserable quarter and an ugly outlook, but in this market there's no such thing as ugly discounted.

I like Fortune Brands' product line of kitchen and bath versus Masco's -- a little more loved, a little more visible. Its liquor business cannot measure Diageo's worldwide reach though. Fortune Brands does have some other minor businesses, like golf apparel, but that can't move the needle.

To me you get a chance as the market has been pretty stupid of late, opening things higher than they should.

I would exit Fortune Brands today at a minimum or at least run a pairs trade, long Diageo, short Fortune Brands, so you don't get hit with too much of a dividend disparity as they have roughly the same yield.

Random musings: Getting a lot of feedback about Wednesday's forceful assumptions about MGM Mirage (MGM - commentary - Cramer's Take). The company's bonds are acting horribly, just to note what might be the obvious. One must ask, given the selling of Ford (F - commentary - Cramer's Take) all the way down, is Kirk Kerkorian out of money? Good piece on MainStreet Wednesday about cleaning out your computer cookies to save cash. Nothing like saving in this environment.

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

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Know What You Own: Cramer mentioned Masco. Related companies are Stanley Furniture (STLY - commentary - Cramer's Take) and Furniture Brands (FBN - commentary - Cramer's Take).

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