Jim Cramer's StopTrading! 4/4/08: Foster Wheeler a Power Play

Recap of Jim Cramer’s comments on Stop Trading! Friday April 4. Click on a stock ticker for more analysis.

ABB (ABB) and Foster Wheeler (FWLT): Cramer chose FWLT as his favorite power play over ABB, since he doesn’t feel the U.S. is ready yet to embrace nuclear. In spite of some problems FWLT has faced, “coal is hot” and he pointed to the company’s powerful quarter and backlog.

Chicago Mercantile Exchange (CME): Since Cramer says that since many believe 50% of commodities should be played on speculation basis, he likes CME after the merger with NMX. Even though it has been a “major bow-wow” he sees a major upside for the exchange after the deal. He especially likes CME’s pro-shareholder management.

Washington Mutual (WM): Cramer called this a “raid du jour” stock, and commented, “Chairman Cox was asked repeatedly by the senators... well, what happens with a raid? I have said that Cox ought to subpoena the tapes... he ought to listen to the tapes right now about what's going on at WM on both the short side and the put side, because this is a classic raid that's going on.” The conviction is that WM is “next” and Cramer warns this is how shorts operate. Cramer added he dislikes the stock intensely, but “it has a great deposit base, and maybe it gets an $8 bid one day... “

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Comments

[teknikk7:]

Why did you not disclose that you are Short WM ???

2008 Apr 07 08:40 AM