Jim Cramer's 'Stop Trading!': Nab Nabors
Erin Burnett and Jim Cramer started Tuesday's "Stop Trading!" on CNBC by discussing the newly released FDIC list of 117 financial institutions having problems.
Since it's a list of numbers and doesn't mention the names of the banks, Cramer offered his own list of banking institutions that he thinks could follow in the footsteps of IndyMac (IDMC). The banks he fears are in deep financial trouble are Downey Financial (DSL), Corus Bankshares (CORS) and BankUnited Financial (BKUNA).
Each of these banks, he said, "is going to swear up and down that they're in good shape," but he's "just looking at nonperformers" and finding the banks that "look like Indymac." So when they inevitably come after him and say it's his fault, he's going to say, "'Guys, you are fabulous! You're simply fabulous!'"
Moving on, Cramer said that "people want to play the hurricane." But he said he thinks it's too risky, because there is a possibility that Huricane Gustav might not hit the Gulf Coast. Instead, he suggests that investors consider buying Halliburton (HAL) and Nabors Industries (NBR).If you take a look at what the XTO Energys (XTO) and the Anadarkos (APC) are doing, Cramer said, you'll "realize that there is a tremendous amount of oil service business." He said it's difficult to say which is a better stock to own, Halliburton or Nabors, but in the end he thinks they both are Buys.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV