Cramer's Stop Trading! Stop Hating the Banks (1/3/11)

by: Miriam Metzinger

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

Apple (NASDAQ:AAPL), Bank of America (NYSE:BAC), Huntington Bancshares (NASDAQ:HBAN), Intel (NASDAQ:INTC), Nvidia (NASDAQ:NVDA)

Bears kept asking what was wrong with Apple (AAPL) when it seemed stuck below $325, but now that the stock has crossed that barrier, even skeptics are now admitting it is cheap. "Now you see people raising their price is happening... Apple is going higher," said Cramer, who added that the addition of Apple into the Dow Jones Industrial Average would be "terrific."

Banks are "the most down and out group" after natural gas, said Cramer. Bank of America (BAC) was a "lawsuit masquerading as a bank" but now that its settlement with Fannie Mae (FNM) has been completed, things may be looking up for BAC. Cramer thinks Huntington Bancshares (HBAN) could easily double. "The issue is the relative inexpensive nature of the group and the hatred of the group, which is just pervasive."

Aggressive downgrades in the semiconductor sector read like "spoofs." Cramer thinks there is too much bearish sentiment about Intel (INTC) and Nvidia (NVDA) which is down 50% and is a safe stock to own.


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