Cramer's Stop Trading! It's a Joy Global World (1/6/09)

Stocks discussed on Jim Cramer's Stop Trading! TV program, Tuesday January 6.

Joy Global (JOYG), Caterpillar (CAT), Home Depot (HD), Lowes (LOW)

Cramer reiterated his prediction that housing will fall by the end of June and pointed to lower real estate prices in New York and falling mortgage rates; “If mortgage rates go to 4%,” Cramer said, “are we really going to sit on the sidelines and own Treasurys?” He recommended early-cycle plays such as Home Depot and Lowes, but added he is not yet bullish on homebuilders.

Cramer discussed the “historic, generational values” of corporate and municipal bonds and says they are better investments than mortage-backed securities right now.

With China jumping on the stimulus plan bandwagon, infrastructure stocks like Caterpillar and Joy Global will come back; “It’s a Joy Global World,” said Cramer, “Everyone is going to be paving roads.”

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Comments

[Paul Price:]

It's a shame Cramer waited for JOYG to almost double from its late November lows to tout it again.

Jan 07 07:51 AM

[Norman Lepo...:]

Boycott Cramer. His advice is the worst! I always change the channel from CNBC whenever he is on. I suggest everyone else do the same if you do not wish to lose money.

Jan 07 08:40 AM

[epeon:]

I have owned JOYG for a few months and it has done quite well. However, I find his recommendation about paving quite odd. The real money maker for Joyg is the mining equipment. They have a good backlog now and I believe mining will make a big recovery over the next few years.

Jan 07 08:54 AM

[einstein p ...:]

I bought JOYG at 38 a while back, thinking it was a good deal once they announced the buyback. Cramer was pushing at that point and had a compelling tale, as did the CEO. At 15 dollars a share, I bought 80% of my position. Cramer was pushing "accidental high yield" companies and JOYG actually fit the bill.

I gave up on taking advice from the talking heads a long time ago, but it doesn't hurt to listen. The herd mentality on Wall Street is one of the few things that hasn't changed and probably never will.

Jan 07 07:20 PM