Cramer's 'Stop Trading!': Buy Caterpillar
Buy Caterpillar (CAT) - Get Report, Jim Cramer said on CNBC's "Stop Trading!" segment Wednesday.
On news of an earthquake that has cost a great deal of damage and as many as 15,000 lives, Cramer spoke of the "rebuild in China," which he said was an equivalent of Hurricane Katrina in terms of infrastructure buildout. He pointed viewers to Caterpillar and
Terex
(TRX) - Get Report
as plays on the news. He also recommended
Cummins
(CMI) - Get Report
. "They're all headed up ... because of the rebuild," he said.
Cramer said today's rally has a lot to do with bullish action from mortgage insurer
Freddie Mac
(FRE)
. "They have gotten rid of the systemic risk," he said. He called Freddie Mac and
Fannie Mae
(FNM)
the "last of the black holes" for the financial crunch.
Cramer said Freddie is getting a lot of business, which he thinks may actually offset the company's losses. He said bears don't believe that's the case, but he pointed out that Freddie is a well-run company. Fannie is not as good, he said.
In the consumer discretionary space, Cramer said he had thought "the buyers would just call it quits" after the government's stimulus checks came in. He revised his forecast, saying maybe earnings from
Kohl's
(KSS) - Get Report
tomorrow will be the time to sell.
He expressed his surprise at the continued rise of some retailers. "Certainly we know that
Costco
(COST) - Get Report
is better than we thought. ...
TJX
(TJX) - Get Report
was a little disappointing, and look -- it goes up." He pointed out that
Wal-Mart
(WMT) - Get Report
stock has traded back to where it was before reporting earnings.
"A lot of people feel that the worst is over," Cramer said. He pointed out that the
Fed
called victory when inflation numbers came in better than expected.
Cramer also said that the year of wind power may arrive this year, not next year as he had previously predicted. He pointed out bullish action in
Fluor
(FLR) - Get Report
and
First Solar
(FSLR) - Get Report
as evidence of alternative energy stories.
He also said that
Research In Motion
(RIMM)
,
Apple
(AAPL) - Get Report
and
MasterCard
(MA) - Get Report
are offering leadership in the economy.
On the housing crisis, Cramer said that
Toll Brothers
(TOL) - Get Report
CEO Bob Toll was "negative negative negative" when the two spoke on last night's "Mad Money" TV show. He predicted that the housing problem in Florida would be much better in 18 months.
At the time of publication, Cramer had no positions in any of the stocks mentioned.
Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for
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