Cramer's Stop Trading! The Golden Arches Extend Their Reach (2/27/09)

Stocks discussed on Cramer's Stop Trading! TV program, Thursday February 27.

McDonald’s (MCD), Chubbs (CB), Travelers (TRV), Humana (HUM)

While the rising dollar may threaten sales abroad, McDonald’s is a buy at $50, particularly as it is expanding in Russia and in China and is benefiting from falling commodity prices. Cramer thinks analysts are being too negative, particularly as the Golden Arches plans to build 40 new restaurants in Russia. While he wouldn’t buy the stock at $62, at $50, the risk seems baked in.

Cramer thought Chubbs’ dividend raise was a good move and isn’t concerned about the company, which is a property and casualty insurer and not a life insurer. He prefers Travelers.

Cramer vented that Obama’s Medicare reforms are going to make companies like Humana look like non-profit organization.

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Comments

[valentino:]

I like Cramers views on the market because he is cautious and honest. The question I would appreciate being answered by him is
I own 1100 shares of Dominion letter D and it has been going down steadily, I believe it is at $30 from 49$ but the dividend remains the same. What would you suggest at this time to hold on to it or sell part of it or all of it. Thank you for a reply.

Feb 27 07:19 PM