Jim Cramer's Stop Trading! Dynegy Die-Hard

Stock quotes in this article: DYN , MIR , NRG , FWLT  

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

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS. Watch Cramer on "Mad Money" weeknights on CNBC. Click here to order Cramer's latest book, "Mad Money: Watch TV, Get Rich," click here to order his book, "Real Money: Sane Investing in an Insane World," click here to get his second book, "You Got Screwed!" and click here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by clicking here.

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