This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Cramer's 'Mad Money' Recap: Invest in the Unstoppable Stocks

Many of these stocks are still trading far cheaper than they did just a few years ago. He noted that First Horizon used to trade for $39 a share but now sells for under $11, while Huntington used to trade at $29 and now is under $7. That's very cheap by historical standards, and why today's selloff had little effect.

But more important than their cheap valuations is how banks make money. Cramer said banks will pay you 0.81% on a five-year CD but will, in turn, invest that money in a five-year Treasury yielding 1.38%. That might not seem like a big spread, he said, but it's more than banks have seen in a very long time and Treasuries will certainly see rates rise faster than the banks will raise their CD rates going forward.

Institutional investors in bank stocks only care about one thing: net interest margin. Now that rates are on the rise, these investors will be returning to the regionals, which is why individual investors should be as well, Cramer said.

Marking Up

It's the end of another quarter on Wall Street, Cramer reminded viewers, and that means it's time for hedge funds and money managers to pile into this quarter's big winners to make themselves look a little better on paper. It's called "marking up," Cramer explained, and it works like clockwork. That's why he reviewed this quarter's biggest winners to see whether they're still worth buying.

Leading the pack was First Solar (FSLR), which rose 56% this quarter, thanks to its best-of-breed technology and a slowdown in Chinese dumping. Cramer said he missed the move in this stock and he's not a buyer.

Next on the list was Advanced Micro Devices (AMD), up 52% for the quarter. Cramer said this company should have a strong second half thanks to the Playstation 4 and new Xbox. He gave it his blessing to buy.

Similarly, GameStop (GME) is up 46% for the quarter, for many of the same reasons. Cramer said he'd be a buyer of this stock only on weakness.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,814.94 -2.96 -0.02%
S&P 500 2,067.03 -2.38 -0.12%
NASDAQ 4,758.2520 +3.36 0.07%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs