Cramer's 'Stop Trading!': Buy Caterpillar

The construction company will benefit from reconstruction in the wake of China's earthquake, Cramer says.
By TheStreet.com Staff ,

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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