Cramer: Lots of Stocks Aren't Low Enough

This post appeared earlier today on RealMoney. Click here for a free trial, and enjoy incisive commentary all day, every day.

The bad stuff is in the market. It just has to get more in. That's all. That's the conclusion you have to reach when you see companies like Terex (TEX Quote), which is valued at only a billion and a half dollars, or Joy Global (JOYG Quote) at $2 billion and change or McDermott (MDR Quote) at $3 billion.

In other words, forget about the stock prices. They are almost all absurd unless we are headed into a recession of such magnitude that companies start showing severe losses in the first quarter. Think about the market cap size. If Terex, which is actually a pretty good machinery company, can sell at a billion and a half dollars -- about the price that some acquisitive company might have paid for a division of Terex a year ago -- why can't it sell at $1 billion? How about $800 million? What's to stop it? The sellers at this point obviously don't even care about it, not one bit. They just want money. The buyers have had their heads twisted off and don't want anything more to do with it. No one wants to recommend it because the estimates are too high. And without a dividend, it has no protection; besides, people might perceive that the dividend can't be paid -- a la Freeport (FCX Quote) -- and sell it anyway.

Last night I had a call from an employee of Parker-Hannifin (PH Quote) who wanted to know what I thought of the stock at $37. I know I have liked this company for years, just a solid metal bending company that has done many things right and really represents the best of American manufacturing. But I took a look at the yield, 2.63%, and said simply that it hadn't fallen enough.