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Jim Cramer's Stop Trading! Buy Costco

Cramer says the CEO is a great merchandiser.

Costco

(COST) - Get Costco Wholesale Corporation Report

is a buy for reasons beyond its real estate position, Jim Cramer said Tuesday on

CNBC's

Stop Trading! segment.

Cramer lauded a Piper Jaffray upgrade of the warehouse retailer that focuses on the company's ownership of most of its big-box stores. But while the call was "really good," Cramer adds that a better reason to buy Costco is CEO Jim Sinegal's unparalleled skill as a merchant.

Cramer also likes

St. Jude

(STJ)

, saying the fundamentals have bottomed in the implantable cardiac device market and that "the bad news is in these stocks." Cramer said he would buy both call options and common shares in St. Jude, which he sees as the most natural takeover candidate in its peer group, which also includes

Boston Scientific

(BSX) - Get Boston Scientific Corporation Report

and

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Medtronic

(MDT) - Get Medtronic Plc Report

.

Cramer would sell the homebuilders into Tuesday's better-than-expected home starts report. Cramer said more houses on the market means bad news for this group, which has no choice but to build even when consumers aren't eager to buy, given the homebuilders' heavy land holdings.

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

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

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