Jim Cramer's 'Stop Trading!': Buy Freeport

Buy Freeport-McMoRan FCX, Jim Cramer said on CNBC's "Stop Trading!" segment Wednesday.

"American companies benefit" from demand for commodities in China, Cramer said. Executives at companies like CSX CSX, Peabody BTU and Arch Coal ACI have been telling Cramer that if customers don't use their products in the U.S., there is demand overseas, he said.

Cramer praised Freeport-McMoRan for its acquisition of Phelps Dodge last year. "That was the greatest acquisition that we've seen in years," he said. He also praised Vale's RIO acquisition activity.

He said short-sellers have fallen on their swords in this space. Freeport is not a U.S. housing play, and neither is Caterpillar CAT, he said.

The U.S. market is "just not that important," to commodities demand, Cramer said. He also observed that consolidation in the industry has led to substantial earnings improvement.

Cramer then moved on to discuss property and casualty insurers. "We all knew that Ambac ABK was not so hot," Cramer said. He pointed out the difference between "real insurance, where you insure real things," and "faux insurance, which is the CDO insurance." Cramer said he thinks Safeco SAF and Chubb CB are great plays in the sector.

The Street has missed out on the insurance game, Cramer said. "There were 12 holds and four sells on Safeco. Thank you, Wall Street," he quipped. On the other hand, "I'm not that high on MBIA MBI. I don't feel that good about MGIC MTG. ... I like Met MET. I like Pru PRU," he said. He was also bearish on AIG AIG and expressed concern over legal problems at Allstate ALL.