Cramer's Stop Trading! The Best Name in Housing (5/3/10)

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Includes: BP, CAA, OIH, RIG
by: Miriam Metzinger

Stocks discussed on Jim Cramer's Stop Trading! TV Segment, Monday May 3.

BP (NYSE:BP), Standard Pacific (SPF), Transocean (NYSE:RIG), Oil Services HLDRS (NYSEARCA:OIH)

Cramer thinks BP (BP) will weather the Gulf of Mexico "storm" over its leaking rig. The company's "incredible" debt-to-capital ratio and strong management will allow it to prevail. It seems that the worst already is over after a New York Times article detailed how the company is containing the oil leak with special equipment. Shares of BP along with Transocean (RIG) and Oil Services HLDRS (OIH) started to rise following the report. Even though BP has to pay for the cleanup, Cramer doesn't think the costs will be more than those required after similar leaks.

Cramer thinks Standard Pacific (SPF) will rise from $7 to $8 because it will be able to sell its inventory and even raise prices. “It’s my best name in the group,” he said.

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