Jim Cramer's Stop Trading! Snap Up Crocs

Cramer said the mother-in-law of all short squeezes is under way.
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Tuesday's modest decline in

Toll

(TOL) - Get Report

shows that the housing business is going to be OK, Jim Cramer said Tuesday on

CNBC's

"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

Yahoo!

(YHOO)

, 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

Four Seasons

(FS)

, "anything is possible."

Cramer also said bullish investors should snap up

Crocs

(CROX) - Get Report

, 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

MasterCard

(MA) - Get Report

," 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!.

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