Cramer's Stop Trading! The CAT in the Hat Is Back (11/10/08)

Recap of Jim Cramer’s comments on Stop Trading! Monday November 10.

Caterpillar (CAT), Family Dollar (FDO)

Cramer would stay away from commodities which are controlled by hedge funds scrambling to raise money;” When they say they have cash, don’t believe it.” Instead, Cramer would play the stimulus package in China with Caterpillar; “When I hear stimulus, that means building. When I hear building, that means Caterpillar.” Cramer thinks CAT’s quarter was good and the analysts are “way off” on the company. He praised management for calling the recession when others were sanguine and for really knowing its business. Cramer also liked Family Dollar as a recession play, because the stores are “where people go to trade down…it’s a great idea here. “

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Comments

[Norman Lepo...:]

He said CAT was a buy, buy, buy at 85. At least he did not change his mind as he usually does when one of his picks tanks.

2008 Nov 11 02:53 PM

[einstein p ...:]

Cramer has been pretty negative on the market ----- maybe he should just recommend shorting stocks instead of buying them.

CAT makes sense if Obama decides to build out the infrastructure in the USA. For China? That may be a bit of a stretch.

2008 Nov 12 11:11 AM

[Uncle Larry:]

I bought CAT commercial paper that is giving a yield of 7.75%. A lot less risk than stock at the moment.

2008 Nov 12 05:41 PM