Cramer's Stop Trading! The Great Untold Housing Story (11/23/09)

Stocks discussed on Jim Cramer's Stop Trading! segment, Monday November 23.

Zions Bancorp (ZION), Williams-Sonoma (WSM), Costco (COST)

• Despite what the bears say, there is no shadow housing inventory, Cramer said. Those who are bearish on housing believe the market will soon be flooded with homes the banks have to unload. However, federal regulators are offering forbearance to banks, and this so-called shadow inventory might not count as inventory at all. "This is the great untold story of this period..." the banks "don't have to sell the homes," Cramer said.
• The banking sector seems to have fallen out of favor, and that makes regional banks seem attractively cheap, "If they can finance their balance sheets the way Zions is doing." Zions Bancorp (ZION) is exchanging $140M of its preferred shares for common stock.
• The consumer is out and spending, as demonstrated by positive numbers from Williams-Sonoma (WSM) and Costco (COST). While the unseasonably mild weather recently was blamed for a slight drop in retail sales, when the weather gets colder, "you are going to be blown away by the numbers," Cramer predicted.

:::::::::::::::::::::::::::::::::::::::::::::::::::::

Seeking Alpha publishes a summary of Jim Cramer's stock picks every day including: Mad Money Recap, Lightning Round and his Stop Trading! Picks.

Get Cramer's Picks by email-- it's free and takes only a few seconds to sign up.

Seeking Alpha is not affiliated with Jim Cramer, CNBC or TheStreet.com

Comments

[Sailorman]

What are all the vacant houses supposed to do disintegrate?

2009 Nov 24 09:30 AM

[Gravity404]

ZIONS is in the process of devaluing their stock more for $140 million to pay down their $4 Billion in debt.

Ahh, yeah, sure Cramer everyone buy, buy, buy.

2009 Nov 24 12:57 PM

[vpwinner]

Just read where one quarter of all mortgages are "under water". That is really really scary!

2009 Nov 24 01:17 PM