Skip to main content

Jim Cramer's Stop Trading! Shrewd Buyers

Look for talented repurchasers such as Pepsi, United Tech and Lehman.

In major market downdrafts like this one, look for companies that have proven themselves shrewd buyers of their own shares, Jim Cramer said on


"Stop Trading!" segment Monday.


(PEP) - Get PepsiCo Inc. Report





United Technologies

(UTX) - Get n.a. Report



(C) - Get Citigroup Inc. Report


Bank of America

Scroll to Continue

TheStreet Recommends

(BAC) - Get Bank of America Corporation Report

are examples.

Pepsi "is a company that has been seizing

the opportunity to be able to buy its own stock when the

S&P 500

knocks it down," Cramer said. "Very few companies are capable of doing that. Pepsi's one of them."

"Most CEOs are just shaking in their boots when they see these kinds of losses," Cramer said. "Bank of America, Pepsi, Citigroup, UTX -- these are guys who have seen all the volatility, including 1983 to 1986, including the crash of 1987, and they know exactly what to do."

Speaking broadly, Cramer said that when the market falls, you have to buy into the psychology that's driving the losses. "People genuinely believe there's going to be a recession," he said. "I don't believe there's going to be one. But I respect the mind-set."

At the time of publication, Cramer was long United Technologies.

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

Action Alerts PLUS. Listen to Cramer's RealMoney Radio show on your computer; just click

here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click

here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click

here to get his second book, "You Got Screwed!" and click

here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by

clicking here. has a revenue-sharing relationship with Traders' Library under which it receives a portion of the revenue from Traders' Library purchases by customers directed there from