Cramer's Stop Trading! Who Cares About the Intel Investigation (12/16/09)

by: Miriam Metzinger

Stocks discussed on Jim Cramer's Stop Trading! TV Segment, Wednesday December 16.

Freeport McMoRan (NYSE:FCX), Marathon Oil (NYSE:MRO), Intel (NASDAQ:INTC), Advanced Micro Devices (NYSE:AMD), Nvidia (NASDAQ:NVDA), Bank of America (NYSE:BAC)

Cramer approved of Fed Chairman Ben Bernanke's decision to keep interest rates low; "The great thing about Bernanke is he doesn't make a statement and then dig his heels in it," Cramer said. "I respect the man. He has done remarkable work. He didn't let a depression happen and won't let us slip back into it."

Stocks to buy on a worldwide recovery are Freeport McMoRan (FCX) and Marathon Oil (MRO). Cramer is less optimistic about the domestic economy for 2010. "If only we had a giant catalyst like Brazil has," he continued.

The Federal Trade Commission is initiating an antitrust lawsuit against Intel (INTC) on allegations of unfair pricing and uncompetitive practices. Recently, there was a $1.25 million settlement with Advanced MicroDevices (AMD) on similar claims. Cramer recommended Nvidia (NVDA) as a stock that could benefit from the investigation, although Morgan Stanley made bearish statements about the stock. "This is like the 10th Intel investigation I have lived through," Cramer says. "I don't care." He thinks the Federal Trade Commission is thinking retroactively by making these claims and is out of touch with business.

Home construction and mortgage applications are on the rise, and housing stocks are up as well, but Cramer is not impressed. "Every time we get a lift in homebuilders I want to sell them," Cramer said. "These are not good stocks." Cramer would play the housing trend with Bank of America (BAC) which is the country's biggest lender and has a huge number of foreclosed homes on the books.


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