Cramer's Stop Trading! The Wrong Stocks Rally (10/5/09)

Stocks discussed on Jim Cramer's Stop Trading! TV Segment, Monday October 5.

Caterpillar (CAT), Fedex (FDX), Joy Global (JOYG), Wells Fargo (WFC), Bucyrus (BUCY), Brocade (BRCD), Hewlett Packard (HPQ), Oracle (ORCL), Cisco Systems (CSCO), IBM (IBM)

The market seems to have shaken off the poor jobs number, but too quickly, as stocks which depend on strong employment are rallying. Cramer said FedEx's 2% gain was "wrong." However, bullishness on Caterpillar was not incorrect, since the company has strong international exposure; its price increases are an indication that the rest of the world is recovering sooner than the U.S. Another machinery stock, Bucyrus, was up 4% on Monday.

In spite of its stated intentions to use greener fuel, China will still need coal to keep up with its huge energy needs. This is good for Joy Global, said Cramer.

Goldman Sachs prefers larger banks over regionals and Cramer would play this news with Wells Fargo; he thinks Goldman Sachs knows WFC is going to report a strong quarter.

Brocade is putting itself up for sale and may attract potential buyers Hewlett Packard, Oracle, Cisco and IBM. With all the competition, Cramer thinks Brocade is going to be bought for a premium.

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Comments

[Constance:]

If Wachovia has worked 2% of their mortgages, are they the HAMP program or just remodifications? I have been waiting since June (when I did qualify for a HAMP) and now they are saying it will be November (after Wachovia's files have all been sent to Wells Fargo). If they hired people to handle the phone calls, they hired the rudest people they could find and the right hand doesn't know what the left hand is doing. My records are unbelieveable with the phone calls and I was told something different everytime I contacted them.

Now, because: HAMP's not available yet, HAMP'S not available yet, OOPS, you can't have a HAMP because you don't have an FHA or FNMA loanbut you can get a modification so fax in your hardship letter along with your bills. Looks great, call again in two days just to make sure all is okay. Two days later; OOPS, you can't have a modification because you have a TX. Equity Loan. NOW, I am 3 months and 1 day past my mortgage and they won't accept partial payment. Now everytime I call Wachovia all they do is ask me my common 5 questions and then say "How much can you pay"? I tell them how much and they say "too bad, you have to pay it all, we can't take a partial payment." I then started ready all the blogs that complain about the identical problems I have had with Wachovia and realize I am not the only one being treated this way. I then get a hold of someone in the Executive Offices who sounded like she actually knew what she was talking about (Cyndy Faulkner on September 14, 2009). She told me that someone, Priscilla Williams, would be contacting me next week and that I was not to worry because my loan was NOT in foreclosure. I waited all the next week and then started making calls to try to find Priscilla Williams. Meanwhile, I was told that my loan was in foreclosure and that is where Priscilla Williams was located. Finally, on September 24th, she called me back and said her Mgr. was out sick and she didn't get the message to call me until now (10 days later???). I have now left another 5 messages with various departments to get a hold of Cyndy Faulkner in the Executive Offices. Ms. Williams told me that my loan was put into foreclosure on the 10th of September and that I now had another $1,117.00 added to my late fees and my due amount. BUT, that I could send in another hardship letter and possibly be granted a repayment program to pay back half up front and the additional could be added to my loan.

Nice of Wachovia to add the $1,117.00 to my loan amount AFTER they would not let me make partical payments before but now they'll let me (after the amount is pretty high). No wonder everyone is going into foreclosure! Let the people pay you now what they can and discuss partial payments until you GET HAMP! Or, was the whole purpose of telling everyone to keep calling every week to see if HAMP was with Wachovia yet is that they knew they weren't getting HAMP and that all the loans were going over to Wells Fargo?

I think everyone was lied to and I wouldn't put it past Wachovia for that to include the people that work for them. Afterall, the country's job market is low and they all need their jobs no matter how bad they are.......

Cramer, check out why we're still having more foreclosures! It's because people are being put off and off until they can't afford their arrearages....... The banks don't care, they want you to short sell your home or go into foreclosure.

Oct 07 12:37 PM