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"At the bottom, things can go right," Jim Cramer told viewers of his "Mad Money" TV show Thursday.
To bring that point home, he revisited his "Mortgage Madness Index," an index of financial and homebuilding stocks that he created on Aug. 3. The index has been more than cut in half since then, but Cramer now feels "the bottom is in" for some of the most hated names on the list.
( CFC). Cramer said he likes all the chatter about a possible acquisition of Countrywide by
Bank of America
. He hopes investors picked up some of the preferred shares of Countrywide on his earlier recommendations.
. Cramer feels the company could be a takeover target and is now turning positive on WaMu.
, Cramer says it will make a lot of money if the
continues to cut rates. Citigroup is a stock that he owns for his
Action Alerts PLUS portfolio.
Cramer is also warming up to
( BSC), but still prefers
In the homebuilding space, Cramer now likes
, but feels
is "still too troubled."
In the mortgage insurance space, Cramer says he's no longer a seller of
but would not necessarily be a buyer at these levels, either.
That's also the case for
. Cramer recommends holding shares already owned, but would not buy more.
And finally, Cramer said he would be a buyer of
( TMA), but only the preferred shares, which he believes would see a greater return if the company were to get a takeover bid.
Making Money From Bankruptcies
If you believe the Federal Reserve won't cut rates fast enough and a recession is likely, Cramer recommends
as "the ultimate hedge against prosperity."
EPIQ, Cramer says, makes its money from bankruptcies and foreclosures. The company has 38% sales growth, but trades at less than twice its growth rate, which Cramer says makes it a cheap stock.
The company also recently completed a secondary offering to provide itself with adequate liquidity to take advantage of increasing bankruptcies, which according to Cramer, makes EPIQ the best play if a recession does come.
It's All in the Brands
Cramer welcomed Eric Wiseman, the new president of
to the studio to discuss the current retail environment. While many retailers are struggling, VF Corp. appears to be firing on all cylinders.
Wiseman said the retailer's strength lies in the diversity of its brands, channels, and products. He also notes international sales, which currently account for 30% of its sales, are still growing strong.
He attributed the company's lack of markdowns to its marketing and technology, which allows it to better give customers what they want. He also said the company's lifestyle brands, such as Wrangler, Northface, Nautica and Vans are some of the company's strongest segments.
Cramer said he's normally leery of new CEOs, but feels Wiseman is the exception.
In the Lightning Round, Cramer was bullish on
Cramer was bearish on
Green Mountain Coffee Roasters
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For more of Cramer's insights during the Lightning Round, click here
At the time of publication, Cramer was long Citigroup.
Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money."
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