Cramer's Stop Trading! 2 European Stocks to Watch (5/22/09)

Stocks discussed Jim Cramer's Stop Trading! TV Segment, Friday May 22

BP (BP)

Cramer is surprised that British oil giant BP hasn't made more than a $1.50 move after its CEO indicated the 7% dividend was safe as long as oil stayed at $50. With oil now at $60, Cramer is waiting for the stock to make a bigger move; "It is the cheapest oil stock I follow."

Unilever (UL), Procter&Gamble (PG)

The second European stock on Cramer's "buy" list is Unilever, which is competing well against Procter&Gamble; and "has the greatest growth prospects in the packaged goods industry, much, much more than almost any other company," said Cramer.

U.S. Steel (X), Nucor (NUE)

While Cramer likes U.S. Steel's management, he says he has no choice but to recommend shorting it and going long Nucor. President Obama has proven that he will carry out his plans, and since U.S. Steel uses more coke coal in its production than Nucor, U.S. Steel will suffer more from taxes. In any case, the stock is up substantially on its secondary and has room to fall, according to Cramer.

Bank of America (BAC)

When Erin Burnett asked Cramer if European banks were in a better position than U.S. banks concerning capital, he pointed out the amount of capital U.S. banks have raised in the past few weeks and says they are "ahead of the game." However, he is concerned about Bank of America dipping below $10, especially with the pressure the shorts are putting on financials. Bank of America is the stock to watch as a bellwether for the entire sector.

Sears Holdings (SHLD)

Cramer believes he was right to trust Sears' Holdings CEO Ed Lampert; the company has performed better-than-expected and the CEO has been able to beat the odds and roll over debt. At one point, short positions outnumbered long, but now "the company is not nearly as bad off as people think…Ed Lampert got it right," Cramer said.

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Comments

[stay strong:]

Cramer said to short US steel!!! haha OMG, I hope no one listened to him. Just like he said to buy CLF at $30 and it crashed a few days later.

May 27 11:38 AM

[PeteK:]

He said the same thing about AKS (steel) about 3 months ago.
Look at AKS now, almost triple.
Just don't listen to one single person.
Hear from all sides. Be safe.

Jun 02 11:47 PM