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Cramer's Take on Top 10 Searched Stocks

James Altucher

Stocks made another strong statement Tuesday despite soaring oil prices. Many market pundits as well as investors feel we have turned the corner. Others are saying this is a classic bear trap. The news Tuesday on the earnings front was not that great, yet it seems that bargain hunters were looking to buy on any dip.

On the earnings front, Fannie Mae FNM posted a larger-than-expected first-quarter loss of $2.2 billion. Homebuilder D.R. Horton DHI reported a quarterly loss of $1.3 billion. UBS UBS joined the party with a giant loss and a plan to cut 7% of its workforce.

To top it all off, after reviewing its portfolio of bank-owned life insurance, Wachovia WB doubled its previously reported loss for the first quarter.

Some of the only positives came after the closing bell, when Cisco CSCO delivered a stronger-than-expected quarter and Disney DIS delivered an earnings beat as well.

With all of this news out there, we thought it made sense to take a look at Tuesday's Top 10 Most Searched Stocks on TheStreet.com and find out what Jim Cramer's recent takes on them.

These stocks could be in the news for a number of reasons. Some require immediate attention, while others may not. But it never hurts to hear what Cramer (or any of the other professional investors on the site) has to say about them. The key is to gather as much information as you can in order to make the most informed investment decisions you can.

Despite all the earnings-related news and record oil prices grabbing headlines, we'll kick it off today with Centex CTX and Hovnanian HOV.

In a RealMoney blog post Monday evening -- Hail to the Homebuilders -- Cramer wrote:

"Sure the banks are down. But you know what is more important? The homebuilders are up. These are the lead indicators, and in case you have been on Mars, they bottomed many months ago.

Now every pullback has to be bought -- take a look for instance at how buyable the Centex pullback was. Every time the group comes in, buyers seek them out.

Take this morning. I am sitting here reading the awful Hovnanian number, every bit as bad as the Centex numbers, and all I can think of is, 'How much will this dog go up on these crummy numbers?'

The answer is: a ton. It is incredible because there is nothing here to grasp. Sure the cash flow is much better than I thought. But does anyone think these companies are going to prosper? The cash flow was up because they cut prices big and dumped homes. That's where the cash flow came from.

Soon, at this pace, these stocks will no longer be reflecting bankruptcy; they will be reflecting earnings growth even though the cash flow comes from earnings shrinkage!

The whole thing is a little Alice in Wonderland like. You can't get this group to down. It just won't go down.

In the end, I don't care as much about the homebuilders themselves as I care about the impact on the banks. HOV showed, like CTX, that if you cut prices big, you sell homes. That's a great lesson for the banks. They ought to take it!"

For more opinions on Tuesday's top searched stocks, including Applied Materials AMAT, check out Cramer's Take on Top 10 Most-Searched Stocks From May 6.