Jim Cramer's Stop Trading! Dynegy Die-Hard

Stop Trading!

TheStreet.com Staff

04/09/07 - 02:54 PM EDT

Dynegy (DYN Quote) is heading to $13 from a recent $10 and change, Jim Cramer said Monday on CNBC's "Stop Trading!" segment.

Cramer said news that Mirant (MIR Quote) is up for sale is lifting the entire power producing group, including NRG (NRG Quote), which also benefited from a positive note from Jefferies. Cramer said these stocks and infrastructure plays such as Foster Wheeler (FWLT Quote) look good right now because "prices have been hostage to the price of oil," which after a sharp rise in recent weeks is now declining. Cramer also said Dynegy chief Bruce Williamson is a "fabulous manager" who doesn't get credit for his vision.

Cramer also applauded a Credit Suisse downgrade of D.R. Horton (DHI Quote) and Pulte (PHM Quote), calling it "eye-opening." Cramer said the report points the way to a 15%-20% decline for homebuilders who haven't sufficiently reduced their land holdings.

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