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Jim Cramer's Stop Trading: Ignore the Downgrade -- Buy Boeing

NEW YORK (TheStreet) -- Shares of Boeing (BA) are lower following a downgrade to hold from buy at RBC Capital Markets. The downgrade was based on high valuation. 

"I think Boeing is terrific," TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Cramer's Stop Trading" segment. 

He added that it didn't make sense to downgrade or sell the stock ahead of the Farnborough Air Show in July. 

He added that CEO James McNerney has done a "remarkable job" as the company has built up a "seven-year backlog" of orders. 

"This is when you should be buying Boeing," Cramer said, although he knows most investors are unlikely to step in during a selloff. When the stock settles down, it's a buy, he said. 

Turning to American International Group (AIG), CEO Bob Benmosche will step down on Sept. 1. Peter Hancock, the current CEO of AIG's Property Casualty division, will assume the AIG CEO position. 

Benmosche has told me that he would never leave without leaving the company in good hands, Cramer said. 

People want to sell the stock down on this news, Cramer added. But he reminded investors that the stock trades below book value and has an attractive share buyback program. 

His contacts indicate that "Hancock is exactly the man for the job," Cramer concluded.

-- Written by Bret Kenwell in Petoskey, Mich.

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At the time of publication, Cramer's Action Alerts PLUS holds BA.

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