Tuesday's modest decline in
shows that the housing business is going to be OK, Jim Cramer said Tuesday on
"Stop Trading!" segment.
Cramer said the Horsham, Pa., homebuilder is reaping the rewards of its modest mid-single-digit price-to-earnings ratio. The stock has already been downgraded by lots of analysts, Cramer said, and has made a sharp move off this summer's low around $22. Cramer told investors not to expect a big gain any time soon, but "the worst is over in housing," Cramer said.
"If Toll is that bad, why isn't it down a couple smackers?" he asked of the stock, which is down 12 cents at $27.93 at midafternoon. "They didn't just fall off the turnip truck," he added of management, led by CEO Robert Toll. "They aren't bozos."
Cramer said management did just fall off the turnip truck at
, but he has been "pleasantly surprised" nonetheless by a 19% run in the stock off last month's pathetic third quarter. Cramer said the stock is up "despite how poorly they are doing" and warned that this "isn't a private equity situation," though he said given yesterday's deal in
, "anything is possible."
Cramer also said bullish investors should snap up
, the Niwot, Colo., maker of funny-looking plastic shoes. Shares were up 9% Tuesday and have doubled since June as shorts take a hiding, Cramer said.
"This is the greatest short squeeze since
," Cramer said, referring to the last week's 30% surge in shares of the credit card processor. The shorts, Cramer added, "are going to be eating Crocs."
At the time of publication, Cramer was long Yahoo!.
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
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
TheStreet.com 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 TheStreet.com.