Cramer kicked off a new "Stocking Stuffers" series of stocks that should not be sold as the threat of a European collapse escalates. His first pick was the home improvement giant Home Depot (HD).
Cramer said more than anything, this company's recent 16% dividend boost signals that management is confident about its future prospects. Better still, Home Depot is a turnaround story that will trump the continued slump in the U.S. housing market. The company's dividend will also provide support for the stock, allowing it to bounce back harder than non-dividend stocks.
When it last reported, Home Depot delivered a two-cent-a-share earnings beat on surprisingly strong revenues. The company also posted accelerating same store sales growth, another sign that management's turnaround changes are working and are here to stay.Cramer said that while Home Depot's earnings look great now, this will be one company what will continue to surprise Wall Street when the housing market eventually takes a turn for the better.
Lightning RoundCramer was bullish on B&G Foods (BGS), SPDR Gold Shares (GLD) and US Bancorp (USB). Cramer was bearish on Prosperity Bancshares (PRSP), AuRico Gold (AUQ), Nuance Communications (NUAN), Sigma-Aldrich Corp (SIAL), Wynn Resorts (WYNN) and MEMC Electronics (WFR).
Too RiskyIn his "No Huddle Offense" segment, Cramer defended his stance on the financial stocks and reiterated "sell the banks." Cramer said that the bank stocks may indeed look cheap, but there is simply still too much risk involved. He said that the banks remain at ground zero for the European crisis and with pitiful disclosure rules, it's impossible to know who's at risk for what. Even the domestic banks are bad, said Cramer, as these companies still have dividends at risk, continued mortgage problems, no revenue growth and no catalyst to own them. "You've been right to side-step this group," Cramer told viewers, and that continues to be true. --Written by Scott Rutt in Washington, D.C. To contact the writer of this article, click here: Scott Rutt. Follow TheStreet on Twitter and become a fan on Facebook. To submit a news tip, send an email to: email@example.com.
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