This Day On The Street
Continue to site
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

Jim Cramer's Stop Trading: KR SWY GILD (Corrected)

This story has been corrected with regard to Jim Cramer's comments on Gilead. 

NEW YORK ( TheStreet) -- Karen Short, an analyst at Deutsche Bank, "has been dead right" about Safeway (SWY), according to TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio. 

Short said Safeway was a buy based on fundamentals when it was trading at $32 per share, and suggested that a buyer would acquire it -- which Cerberus recently announced it would do, at $40 per share. 

However, Cramer said, "she's sticking with her idea that Kroger (KR) is going to come back" and contend as a buyer for Safeway. Her opinion contradicts what most investors had assumed. 

He called Kroger a "well-run company" that doesn't want to load its balance sheet with debt. But he said he didn't want to be against Short, either. 

Must Read: Keds, Saucony Maker Wolverine Steps Up Revenue Despite Debt

Turning to biotech, "Stifel defends Gilead Sciences (GILD) today" after a rumor that Merck (MRK) has a better hepatitis C drug, Cramer said, which may explain the recent weakness in Gilead's share price.  However, all the biotech stocks have been getting hit over the past few trading sessions, Cramer said. 

This could be an indicator that the economy is finally improving, allowing investors to feel comfortable enough to move out of biotech -- one of the best-performing sectors in the past year -- and into other sectors and stocks. 

"That would be remarkable," Cramer said. "It's been the greatest place to be." 

With all of the M&A activity, IPOs and positive press, these stocks haven't "been able to get out of their own way," he concluded. Now, investors may be finally taking a rest. 

- - Written by Bret Kenwell in Petoskey, Mich.

At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr 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

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
SWY $35.10 -0.11%
AAPL $118.63 0.75%
FB $106.17 -0.73%
GOOG $750.33 -0.75%
TSLA $222.46 2.20%


Chart of I:DJI
DOW 17,813.89 +1.70 0.01%
S&P 500 2,089.14 +2.55 0.12%
NASDAQ 5,102.8080 +0.33 0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs