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

Includes: CB, HUM, MCD, TRV
by: Miriam Metzinger

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

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