Cramer's Stop Trading! RIM Is a Value Trap (6/17/11)

by: Miriam Metzinger

Stocks discussed on Jim Cramer's Stop Trading! TV Program, Friday June 17.

Research in Motion (RIMM), Apple (NASDAQ:AAPL), VF Corp (NYSE:VFC), Lululemon (NASDAQ:LULU), Costco (NASDAQ:COST), Ralph Lauren (NYSE:RL)

Research in Motion (RIMM) is a value trap that is going down. With Apple (AAPL) dropping on the departure of Ron Johnson, Cramer would not consider buying RIM, which has the added problem of having two CEOs. Cramer is bearish on the tech sector as a whole.

With crude dropping 20% in one day, Cramer would look to the retailers who benefit from lower gas prices and falling raw materials costs. Good retail buys include: VF Corp (VFC), Ralph Lauren (RL), Lululemon (LULU) and Costco (COST).

Ethanol stocks got hit on news that subsidies for the fuel might be canceled. Cramer has notice a general bearishness concerning any companies that are dependent on government subsidies. With oil prices dropping, commodities will soon follow suit.


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