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Jim Cramer's Stop Trading! Buy Hovnanian

Cramer says the struggling builder could get bought out by Toll.



(HOV) - Get Hovnanian Enterprises Inc. Class A Report

, Jim Cramer said Tuesday on CNBC's Stop Trading! segment.

Cramer said investors shouldn't buy homebuilders in general off the Fed's 50-basis-point rate cut, but he believes Hovnanian could get taken out by

Toll Brothers

(TOL) - Get Toll Brothers Inc. Report

, which he calls the only well-managed company in the group. Cramer says writedowns at Hovnanian have been sufficient to make the stock worth a flier.

Cramer also reiterated he likes


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off a fed funds cut.

At the time of publication, Cramer had no position 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

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