Cramer's Stop Trading! Stay out of the Hedges (12/10/08)

Stocks discussed on Jim Cramer’s Stop Trading! TV program, Wednesday December 10.

Terex (TEX) Manitowoc (MTW) Caterpillar (CAT), Colgate (CL), Kimberly-Clark (KMB), eBay (EBAY), Mercadolibre (MELI), Terra Nitrogen (TNH)

While Cramer was bullish on infrastructure a week ago, he is cautious now that hedge funds have been buying up names like Terex, Manitowoc and Caterpillar as if a recovery is around the corner; “You have to do the opposite of what the hedge funds do,” Cramer said. “Because they’re just incapable of making money for you.” Instead, he would wait for a drop in infrastructure stocks to buy lower and would pick up defensive stocks like Colgate, and Kimberly Clark. He thinks eBay should by the remaining 82% of Mercadolibre, which would be a good stock to buy on a pullback. He would also look at Terra Nitrogen for its dividend, but would avoid other ag stocks right now.

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

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

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