Cramer's 'Mad Money' Follow-Up: Cheap Banks
On Monday's "Mad Money" show, Jim Cramer said that the takeaway from Lowe's (LOW) - Get Lowe's Companies, Inc. Report conference call is that the housing market is in the recovery stage. Buying a house is more affordable now than renting, so according to Lowe's, there's a market for lawn and garden items and paint used in home fix-ups.
As a play on paint, Cramer recommended
Sherwin-Williams
(SHW) - Get Sherwin-Williams Company Report
, and as a play on gardening, he recommended
Scotts Miracle-Gro
(SMG) - Get Scotts Miracle-Gro Company Class A Report
.
On Tuesday, Lowe's added 11 cents to close at $20.05. Sherwin-Williams rose $1.40, or 2.5%, to $57.12, and Scotts Miracle-Gro closed up 46 cents, or 1.3%, to $36.01.
Goldman Sachs
(GS) - Get Goldman Sachs Group, Inc. Report
and
JPMorgan
(JPM) - Get JPMorgan Chase & Co. Report
remain the strongest banks on Cramer's list, and he owns both for his
Action Alerts PLUS charitable trust.
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According to Cramer, however, the cheapest banks include Action Alert PLUS name
State Street
(STT) - Get State Street Corporation Report
,
BB&T
(BBT) - Get BB&T Corporation Report
and
US Bancorp
(USB) - Get U.S. Bancorp Report
.
Cramer said that his least favorite bank is
Capital One
(COF) - Get Capital One Financial Corporation Report
On Tuesday, Goldman lost $2, or 1.4%, to close at $$141.15, and JPMorgan slid $1.45, or 3.9%, lower to $35.81. State Street gained $1.42, or 3.4%, to $43.21; BB&T lost 12 cents to close at $22.50; and US Bancorp fell 49 cents, or 2.5%, to $18.86. Capital One gave up $1.16, or 4.5%, closing the day at $24.90.
At the time of publication, Cramer was long State Street, JPMorgan and Goldman Sachs.
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