Recap of Jim Cramer's comments on Stop Trading! Tuesday August 26.
The List - IndyMac (IDMC.PK), Downey Financial (NYSE:DSL), Corus Bankshares (CORS), BankUnited Financial (BKUNA)
Erin Burnett and Jim Cramer discussed the newly released FDIC list of 117 financial institutions having problems. The list includes numbers and doesn't mention the names of the banks. Cramer offered his list of banking institutions that he thinks could follow in the footsteps of IndyMac. The banks he fears are in deep financial trouble are Downey Financial, Corus Bankshares and BankUnited Financial. Each of these banks, he said, “is going to swear up and down that they're in good shape,” but he is “just looking at non-performers” and finding the banks that “look like Indymac.” So when they inevitably come after him and say it's his fault, he's going to say, “Guys, you are fabulous! You're simply fabulous!”
Cramer also mentioned that “people want to play the hurricane.” But he thinks it's too risky, because there is a possibility that Hurricane Gustav might not hit the Gulf Coast. Instead, he suggests that investors consider buying Halliburton and Nabors Industries.If you take a look at what companies like XTO Energy and the Anadarko are doing, Cramer said, you'll “realize that there is a tremendous amount of oil service business.” He said it's difficult to say which is a better stock to own, Halliburton or Nabors, but in the end he thinks they are both Buys.
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