Gustav Moves Overdone - Cramer's Stop Trading! (8/27/08)

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Includes: AMFW, FLR, FMCC, FNMA, PWR, SHAW
by: Joan Wickham

Recap of Jim Cramer's comments on Stop Trading! Wednesday August 27.

Gustav Moves

Jim Cramer warned viewers “You need a direct hit in order to take out the Gulf.” Cramer said he's wary about making a trade in the natural gas and oil company group on the assumption that Tropical Storm Gustav will hit the Gulf Coast, because if it doesn't hit, oil could be down by $8 to $9 by Tuesday. “I like the group,” he said, but it is making unreasonable moves based on weather reports.

Is the Party Over? Fluor (NYSE:FLR), Foster Wheeler (FWLT), Shaw Group (SGR)

The Wall Street Journal declared recently that the infrastructure trade is done, Cramer said: “If the party's really over, then why is Fluor up so big?” He said Shaw Group and Foster Wheeler, which he owns for his charitable trust, are also up.

What was the Source? Freddie Mac (FRE), Fannie Mae (FNM)

Cramer said that he wants to know the Treasury source that Barron's used in the article that contributed to the 50% fall in price of shares of Freddie Mac and Fannie Mae, which have been climbing ever since. “All that's happened is that it's gotten worse for Fannie and Freddie,” Cramer said, “but the stocks go up every day. Where is that Barron's source?”

Wind Power - Quanta Services (NYSE:PWR)

Cramer said he's been buying Quanta Services for his charitable trust. He believes Quanta has figured out how to address the problem of connecting wind turbines to the grid.

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