Skip to main content

Jim Cramer's Stop Trading! Buy a Lender

Nothing is wrong with credit quality, he says.

Subprime lenders are a solid business right now, because credit losses aren't a concern, Jim Cramer said on


"Stop Trading" segment Wednesday.

Even so, companies such as

Accredited Home Lenders


have stumbled as competition has eroded their margins.

"What hurt them was not the credit quality but that



moved into the game and



moved into game," he said. "It's a margin-shred story."

Cramer said investors don't need to worry about defaults or a slowdown in lending because "we're nowhere near the red light on credit."

Switching gears, he was bullish on

Scroll to Continue

TheStreet Recommends




Ultra Petroleum



Core Labs


. "If Devon stays here, it will be bought by a European major," perhaps a name like






, he speculated.


Duke Energy


is a "nice solid utility that grows," he said.

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

Jim Cramer is a director and co-founder of He contributes daily market commentary for's sites and serves as an adviser to the company's CEO. Outside contributing columnists for and, 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

Action Alerts PLUS. Listen to Cramer's RealMoney Radio show on your computer; just click

here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click

here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click

here to get his second book, "You Got Screwed!" and click

here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by

clicking here. has a revenue-sharing relationship with Traders' Library under which it receives a portion of the revenue from Traders' Library purchases by customers directed there from