Sign of a Higher Housing Market

If you don't think that Realogy (H - commentary - Cramer's Take) is a good sign of a housing bottom, then you have to focus on ElkCorp (ELK - commentary - Cramer's Take).

This is a roofing company, perhaps as levered to housing as USG (USG - commentary - Cramer's Take), maybe more. It has been down in the dumps, missing quarters for years and years and years. I know it; I used to short it regularly for my hedge fund. It was an annuity.

Now it gets a bid from Carlyle -- a big bid, no less?

You don't buy a roofing company when you're going into a housing recession. You buy it when you are coming out.

This is the best sign I have seen that the smart money says this housing market's going higher.

I know the Black & Decker (BDK - commentary - Cramer's Take) news was breathtakingly bad.

Doesn't this make up for it, though?

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

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