If you have been uncomfortable with your stock holdings on big down days like we've had recently, use Friday's strength to trim, said Jim Cramer on his
"RealMoney" radio show. Many mutual funds' fiscal years end in October, said Cramer, and many of those funds have been selling to lock in gains. But that selling is over as of Friday, he said, which is why the market lifted. Cramer isn't looking to sell stocks here, but he knows many listeners "can't take the pain." For those who can't, use Friday's strength as an opportunity to sell, he said.
Of HMS Holdings ( HMSY) and Fremont Michigan Insurance ( FMMH), Gabrielski said both stocks' trading volumes were too low to consider investing. Stocks with such low trading volumes are prone to manipulation and excessive volatility, he said. A stock recently discussed in the Stocks Under $10 newsletter that Gabrielski likes is Hudson City Bancorp ( HCBK). Hudson City has 80 branches in the New York/New Jersey area, he said, and it is growing. Gabrielski believes the Federal Reserve will soon be finished raising interest rates, which will benefit bank stocks. Cramer is not a fan of Toll Brothers ( TOL). He is especially worried about high-end housing as a result of speculation in that market. The only housing stock Cramer would embrace is St. Joe ( JOE) because it is a demographic play, he said. In response to a question on Sears Holdings ( SHLD), Cramer said "I like it. I own it, and I keep quiet about it." Sears is a volatile stock, he said, and it is not for the squeamish. It's a special situation as Cramer believes his friend and Sears' controlling shareholder Eddie Lampert is doing a great job merging Sears and Kmart. Cramer believes the easy money in Sears has been made and that the stock is now resting. It will take better earnings and more deals to get the stock moving again, he said. Cramer is not pounding the table to buy Sears because, with the economy slowing, now is not a great time for retail stocks. But, Cramer is patient and believes in the long-term outlook for Sears. Cramer's favorite stocks now are UnitedHealth Group ( UNH) and Procter & Gamble ( PG). Cramer would take the trade in Georgia Gulf ( GGC), he recommended recently. Regarding Conexant ( CNXT), Cramer would sell a little and let the rest run, he said.