RealMoney Radio Mailbag: A Banking Bet
Editor's note: The following are questions received from listeners of "RealMoney Radio." To send Cramer a question about topics from his radio show, click here. Listen to Cramer's latest radio show by clicking here.
Jim, Doug Kass says Lehman Brothers (LEH) is a short. Do you agree?-- Benny from the Bronx
James J. Cramer:
I don't believe that Lehman is a short at all. Its banking business is top-tier and it has great positioning in fixed income and energy.
Besides, the stock is trading at only 13 times earnings, which isn't exactly bubble-like.
Is Valero (VLO) - Get Report a buy?-- Jonas from California
James J. Cramer:
I am not a fan of the refiners here. I believe the margins are going to get squeezed, which could be very troublesome around earnings season.
For the oil patch, I prefer late-stage infrastructure plays like
Foster Wheeler
(FWLT)
, which I own for my
Action Alerts PLUS charitable trust.
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