Jim Cramer's 'Stop Trading!': Avoid WaMu

The stock is overpriced, Cramer says.
By TheStreet.com Staff ,

Washington Mutual (WM) - Get Report is too expensive, Jim Cramer said on CNBC's "Stop Trading!" segment Tuesday.

"The work that

CNBC

reporter David Faber is doing on this Washington Mutual is so much better than the work that Wall Street is doing," Cramer said. He called the stock "dramatically mispriced," saying that it should be much lower.

Cramer said that the market has been mispricing stocks, and that's what's happening in Washington Mutual. "This stock is too high. ... Keefe Bruyette did some work today which put the bottom lower. ... To me, all the banks are rolling over," Cramer said. "Why would you want to be in this one?" Cramer said. "The takeover premium is gone. ... This stock should be between $9 and $10, max."

Cramer said Washington Mutual's price action shows that the market is wildly inaccurate right now. "The stock was at $13 yesterday," he said. "We've overcorrected to the downside. Now we've overcorrected to the top."

Today, Morgan Keegan downgraded

Apple

(AAPL) - Get Report

to underperform from market perform. Cramer said that Apple has had a huge run "on nothing." He said he needs to see new versions of the iPhone before he makes a decision about the stock. "That doesn't mean Apple isn't my favorite tech stock. It is," he said.

Cramer said his problem is that stocks shouldn't go parabolic. However, he said he liked action on agriculture stocks, including

Agrium

(AGU)

and

Potash

(POT)

.

At the time of publication, Cramer had no positions in any of the stocks mentioned.

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