Jim Cramer's Stop Trading! Buy a Lender

Nothing is wrong with credit quality, he says.
Publish date:

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

(LEND) - Get Report

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


(DVN) - Get Report


Ultra Petroleum


Core Labs

(CLB) - Get Report

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


(TOT) - Get Report



(BP) - Get Report

, he speculated.


Duke Energy

(DUK) - Get Report

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

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

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