Cramer's 'Stop Trading!': Sallie Mae

Jim Cramer says Sallie Mae, which just won an important contract, should be higher than it is.

Author:: TheStreet.com Staff
Publish date:: Jun 18, 2009 3:09 PM EDT

Jim Cramer says Sallie Mae, which just won an important contract, should be higher than it is.

"How refreshing is it for Geithner to come out and give us a no-BS picture?" said Jim Cramer on CNBC's "Stop Trading!" segment on Thursday. "That stems from confidence."

Earlier, Geithner stated that while banks such as

JPMorgan

(JPM) - Get Report

and

State Street

(STT) - Get Report

have been returning TARP funds now, that didn't mean that further down the line some of those banks would not need to be bailed out again.

"Geithner has gone from being unpolished," said Cramer, "to being very polished and admitting when he doesn't know what's going to happen."

Sallie Mae

(SLM) - Get Report

has room to go, said Cramer. He said people thought the company was wiped out, but it "just won this very important servicing contract." The stock is up, but not as far as it should be, he said, saying it should be at $9 or $10 instead of around $8.

Cramer said that

Caterpillar's

(CAT) - Get Report

numbers for North America and Japan were "devastating." "They were so bad," he said, and cautioned viewers that "maybe we're getting greedy. Maybe it's time to step back" from stocks such as Caterpillar,

Bucyrus

(BUCY)

and

Joy Global

(JOYG)

and "not be so sanguine and think they're going to keep growing to the sky."

FedEx

(FDX) - Get Report

is "now above where it reported," Cramer said. "I've gone over that quarter with a fine-toothed comb. It wasn't nearly as bad as people think."

At the time of publication, Cramer was long JPMorgan and State Street.

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