Cramer's 'Stop Trading!': KB Could Catapult

"Maybe this is the end of the monster expensive buybacks," said Jim Cramer on Thursday's "Stop Trading!" segment on CNBC.

He used General Electric(GE Quote), which he owns for his Action Alerts PLUS charitable trust, as an example. "Here's a company that has bought back stock for years and years and years, and the buyback did nothing," he said. "They canceled the buyback, and the stock goes up. I'm telling you that corporate America is going to re-evaluate buybacks."

KB Home(KBH Quote) "is the quickest way to make money off" the government bailout plan, Cramer said, other than banks.

He said the principal beneficiary of the package will be the area that's been hardest-hit: California. KB Home is a "good company, obviously in a terrible industry," with a good balance sheet and a safe dividend, he said.

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