Throw Money At It - Cramer's Stop Trading! (10/16/08)

Recap of Jim Cramer's comments on Stop Trading! Thursday October 16.

Invest in America

Everything's on the line here. Everything," said Jim Cramer. "Let's fix this problem. Throw money at it, cut rates." The goal every day, he said, "must be to get the Great Depression off the table." One suggestion Cramer had involved the Social Security Trust Fund. "I think that we ought to take some of that huge amount of money that's doing nothing in there," he said, and use it to buy bad assets. "There are too many people in America hurting. They're worried about not being able to retire. Let's use some of that money to make it so that they can retire, and that's by investing in America right now."

Stock Ideas - Heinz (HNZ), Coca-Cola (KO), Waste Management (WMI), Caterpillar (CAT)

Cramer had a few stock ideas, too. "We've got a lot of companies that are beginning to show real yields," he said.

• Heinz offers a 4% dividend yield. "The only thing that's wrong here is that you've got a stronger dollar which has caused some weakness in the stock," he said. "I really like it. It's just too good a brand name." He said Heinz should be bought right now. He’s not sure how much longer the company can stay independent if the stock goes any lower.
• Coca-Cola pays out 3.5%. KO between $40 and $43 is a steal, Cramer said. "I'm not complacent and don't like the market, but if you want to look back and say, How did I get a certain stock at a certain price?" you buy Coke, Cramer said, between $43 and $40. "This company can reinvent itself. It's got a lot of cash flow. It doesn't have to be just a soda company."
• Waste Management just reported a better-than-expected quarter, and pays 3.75% to its shareholders. Cramer said: "There are companies that you put your first bid on here, and then you let the hedge funds go wild and knock the stock market down, and then you buy them. This is literally the only strategy that is working in this market."
• Caterpillar just hit a 4% yield. "It's a little industry, obviously, so it could start having cyclical problems," Cramer said, but "you start buying here."

Seeking Alpha publishes a summary of Jim Cramer's stock picks every day including: Mad Money Recap, Lightning Round and Stop Trading!

Get Cramer's Picks by e-mail -- it's free and takes only a few seconds to sign up.

Seeking Alpha is not affiliated with Jim Cramer, CNBC or TheStreet.com

Comments

[UncleFrank:]

Cramer has zero credibility!

2008 Oct 16 06:47 PM

[pantograph:]

Doesn't Cramer realize that the Social Security "Trust Fund" has nothing but Treasury debt in it? A few years ago, GWB said that it was nothing worthless paper. Can you imaging what would happen if all those T-bonds hit the market! It would sure pull the rug out from under the "investors" who last week sold all their stocks and "fled to safety" in T-bonds (at our Lord and Saviour JC's recommendation).

2008 Oct 16 07:00 PM

[Pfloyd234:]

I wonder about Jimmy's sanity as each day goes by!! I really Do!!

2008 Oct 17 07:04 PM