Jim Cramer's Stop Trading! Buy a Lender

Subprime lenders are a solid business right now, because credit losses aren't a concern, Jim Cramer said on CNBC's "Stop Trading" segment Wednesday.

Even so, companies such as Accredited Home Lenders (LEND Quote) have stumbled as competition has eroded their margins.

"What hurt them was not the credit quality but that Bear (BSC Quote) moved into the game and Merrill (MER Quote) moved into game," he said. "It's a margin-shred story."

Cramer said investors don't need to worry about defaults or a slowdown in lending because "we're nowhere near the red light on credit."

Switching gears, he was bullish on Devon (DVN Quote), Ultra Petroleum (UPL Quote) and Core Labs (CLB Quote). "If Devon stays here, it will be bought by a European major," perhaps a name like Total (TOT Quote) or BP (BP Quote), he speculated.

Additionally, Duke Energy (DUK Quote) is a "nice solid utility that grows," he said.