Jim Cramer's 'Stop Trading!' Subprime Survivors

Annaly and Anworth made the right moves, and Citadel threw E*Trade a bone.
Publish date:

In spite of the subprime ugliness, some companies have managed to start steering in the right direction, Jim Cramer said on


"Stop Trading!" segment Friday.

Looking at some companies that have managed to dull the mortgage crisis' impact, Cramer noted


(ANH) - Get Report

recent stock offering netting $60 million. He liked that, but said


(NLY) - Get Report

"did the same thing," and he likes it more.

He also lauded Citadel Investment Group, saying "they're very smart guys, they got


(ETFC) - Get Report

," referring to


$2.5 billion investment in the ailing online broker, whose portfolio had high exposure to the mortgage market.

Moving on to retail, Cramer said that

J. Crew


CEO Mickey Drexler is to be lauded for steering the company to its recent earnings beat amid generally dreadful reports from the sector. "He's not a financial guy. ... He actually has an eye for merchandise," Cramer said.

Mortgage insurers have suffered in the recent home-finance pain, Cramer said. "Every time there's a foreclosure, the servicing guys are going after the guys that are insured. ... They've been cherry-picking."

According to Cramer, the recent Treasury decision to stop mortgages from resetting "is a bailout, but that's OK."

Cramer is glad to see that the "Treasury is engaged, the

Federal Reserve

is engaged, they weren't engaged. ... I have been very negative on this issue, but there are limits."

Cramer pointed out that there are likely only a two-and-a-half million homes that are at the center of the subprime crisis. The problem is not national, but regional. "You're talking about 7 million homes max, the majority of which are in California and Florida," he said, but "second-lein is awful ... a home-equity line of credit is just toxic."

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

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