Must Settle - Cramer's Stop Trading! (10/20/08)

by: Joan Wickham

Recap of Jim Cramer's comments on Stop Trading! Monday October 20.

Must Settle – Boeing (NYSE:BA), Honeywell (NYSE:HON), United Technologies (NYSE:UTX), Precision Castparts (NYSE:PCP)

Cramer focused on one Dow stock – Boeing. The company has to settle the strike “by November 1 or it’s really going to impact earnings. Maybe after the election they’ll settle it.” Honeywell was down again today. United Technologies doesn’t have as much exposure as Precision Castparts but they will hurt as well. “The strike is really beginning to hurt America and the President doesn’t seem to be aware of it,” Cramer continued. He said there will be unbelievable pressure on these stocks that do business with Boeing if the strike is “elongated.” The contractors are starting to hurt. Eaton had a good quarter but “everything that goes into a plane is getting stretched here,” Cramer said.

Right Now – Best Buy (NYSE:BBY), Circuit City (NYSE:CC)

Cramer says “Everyone thinks whatever strategy Circuit City has will work.” He believes, “Eventually these strategies don’t work.” When it’s all over Cramer thinks there will only be one stand alone player left. As for Best Buy, the more it goes down the more tempting it is.

Upgrade – Transocean (NYSE:RIG)

Cramer said it was "very interesting" that Morgan Stanley upgraded Transocean from sell straight to buy, bypassing hold altogether because the stock had dropped so fast. "You can't cancel giant Brazilian contracts," he said. "It doesn't work like that." Besides in five years there may be another shortage.

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