Cramer's Stop Trading! Avon's Not So Pretty (10/30/08)

Recap of Jim Cramer’s comments on Stop Trading!  Thursday October 30.

Lowe’s (LOW), Home Depot (HD), Fortune Brands (FO), Black & Decker (BDK)

Cramer praised the government’s move to guarantee $6 billion in home mortgages; this is good news not only for 3 million homeowners in trouble, but for housing-related stocks such as Lowe’s, Home Depot, Fortune Brands and Black & Decker, “That’s the first genuine good news for a cohort that has been the absolute worst,” Cramer said.

Avon (AVP), Colgate-Palmolive (CL)

While Avon usually outperforms Colgate-Palmolive in a sluggish market, this trend has actually been reversed recently, and CL actually appears stronger than AVP. Cramer would not be a buyer of Avon, even with its 4% dividend.

Joy Global (JOYG), Foster-Wheeler (FWLT), AECOM Technology (ACM)

While infrastructure has been “just decimated by hedge funds,” Cramer thinks the decline is unjustified, because projects have not been cancelled nor have major orders been reduced. Cramer says Joy Global, Foster-Wheeler and AECOM Technology are stable infrastructure names.

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