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Jim Cramer's Stop Trading! Buy Hovnanian

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

Buy

Hovnanian

(HOV) - Get 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 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

Wachovia

TheStreet Recommends

(WB) - Get Report

off a fed funds cut.

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

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