Jim Cramer's Stop Trading! Buy Cummins

Buy Paccar (PCAR Quote) and Cummins Engine (CMI Quote), Jim Cramer said Monday on CNBC's Stop Trading! segment.

Cramer said the "world of shorts is being rocked" by Monday's Bear Stearns upgrade to outperform from neutral. Cramer said the stocks are working because they weren't just truck engine plays, as bears had claimed. Cummins rose 11% and Paccar 6% Monday, but Cramer said the stocks have further to run.

Cramer also said a raft of buyout deals in the chemicals business points to possible buyouts at Olin (OLN Quote) and PPG (PPG Quote), which he called "cheap."

But Cramer warned investors off the restaurant stocks, saying many could be hit by a Morgan Stanley report suggesting private equity may not ride to the rescue of outfits like Brinker (EAT Quote). He said the only stocks he likes in the group are Buffalo Wild Wings (BWLD Quote), Chipotle (CMG Quote), McDonald's (MCD Quote) and Yum (YUM Quote) -- generally, the players with strong international businesses.