Cramer's Stop Trading! Toll Brothers' Sign of Stabilization (11/11/09)

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Includes: BAC, KMB, ORA, TOL, WFC
by: Miriam Metzinger

Stocks discussed on Jim Cramer's Stop Trading! TV Segment, Wednesday November 11.

Toll Brothers (NYSE:TOL), Bank of America (NYSE:BAC), Wells Fargo (NYSE:WFC), Ormat Technologies (NYSE:ORA), Kimberly Clark (NYSE:KMB)

On Toll Brothers' conference call, Cramer noticed the low rate of cancellations; "Given the fact that the cancellations are very low for Toll, that means there's a lot of available mortgage money," said Cramer. "The mortgage rates are low." The cancellation rate of 6% is at the same level it was during the 2005 housing boom. Cramer sees this as yet another "sign of stabilization" and is good news for Wells Fargo (WFC) and Bank of America (BAC).

Solar company Ormat Technologies (ORA) has always been at the top of the field, but has lacked a partner. Cramer says the only equivalent for Ormat is First Solar (NASDAQ:FSLR) which has been hurt by subsidy cuts in Europe. Cramer is bullish on Ormat, which is well off its high and should rise higher along with oil.

Finally, Cramer said he likes Kimberly Clark (KMB) which has a 3.7% yield, because it is a weak dollar play.

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