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Jim Cramer's Stop Trading! Buy Annaly

Cramer says the mortgage REIT will eventually benefit from housing pain.

Buy

Annaly

(NLY) - Get Annaly Capital Management, Inc. Report

, Jim Cramer said Thursday on

CNBC's

"Stop Trading!" segment.

Cramer applauded the real estate investment trust's plan to set up a separate company to invest in residential mortgage loans and other assets.

Cramer said Annaly's Chimera Investment affiliate, which filed last Friday for an IPO, will benefit from Annaly chief Mike Farrell's expertise. Cramer has said Farrell is "money in the bank" even as the rest of the sector teeters on the brink of collapse.

Cramer said a looming recession and the steepening decline in housing prices will pay off for Annaly as Chimera scoops up undervalued assets.

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

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