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CNBC's Jim Cramer thinks the shrinking number of underwater mortgages and a rising net interest...

CNBC's Jim Cramer thinks the shrinking number of underwater mortgages and a rising net interest margin are "incredibly" bullish signs for bank stocks. 9.7M properties were underwater in the U.S. during Q1, down from 10.5M in Q412. That's significant, he adds, because when a homeowner goes from underwater to above water on their mortgage, they spend three times as much at the retail level than they would do otherwise. His favorite pick: Wells Fargo (WFC). It's the single greatest play if you think houses are coming out from underwater," Cramer says, because of its "ability to take the collateral and make new loans." (Video).
Comments (13)
  • deercreekvols
    , contributor
    Comments (5722) | Send Message
     
    Could be the kiss of death for (WFC).

     

    Cramer's track record should be noted when he is quoted on any stock/company.

     

    If you are buying (WFC) pay no attention to Jim Cramer and do your own research....please.

     

    Long (WFC) well before Mr. Cramer's call.
    12 Jun 2013, 08:16 PM Reply Like
  • Fear & Greed Trader
    , contributor
    Comments (5326) | Send Message
     
    Cramer owns it and hypes it every chance he gets..

     

    Wouldn't be concerned (WFC) is a quality name
    12 Jun 2013, 08:48 PM Reply Like
  • User 398666
    , contributor
    Comments (15) | Send Message
     
    For what it's worth, Dick Bove has been saying much the same.
    12 Jun 2013, 08:20 PM Reply Like
  • Fear & Greed Trader
    , contributor
    Comments (5326) | Send Message
     
    Bove has been on top of the bank sector for a while. He was one of the first to call the turn well before the stocks started lifting off.
    12 Jun 2013, 08:50 PM Reply Like
  • MadAsHellAnd
    , contributor
    Comments (213) | Send Message
     
    "if you think houses are coming out from underwater,"

     

    Big if. I don't believe BAC et al are truthfully reporting these counts. That's right, I "think" that they are willfully understating them, as they extend and pretend, and suck on the guaranteed Fed spread while they wait for the fruit of their past incompetence to magically melt away. I could be wrong. The big 4 could be fully, accurately and completely transparently disclosing everything, making me just a paranoid whining tinfoiler, couldn't they.
    12 Jun 2013, 08:21 PM Reply Like
  • PalmDesertRat
    , contributor
    Comments (2940) | Send Message
     
    Of all the market sub-sectors banking/finance has been the strongest over the last year.

     

    What Cramer is recommending is to buy high and help to sell higher. That might work-for my part,I prefer to buy low and sell high. In fact I've been a net seller of financials in the last six months.
    12 Jun 2013, 08:32 PM Reply Like
  • Mattster
    , contributor
    Comments (162) | Send Message
     
    MTG is the play here
    12 Jun 2013, 08:45 PM Reply Like
  • Archman Investor
    , contributor
    Comments (2466) | Send Message
     
    Cramer?
    What?
    Who?

     

    Meaningless.
    12 Jun 2013, 08:48 PM Reply Like
  • Ted Bear
    , contributor
    Comments (607) | Send Message
     
    Couple of recent Crammer plays which come to mind...NCR was a DOG at 23 ($32.91 now), and AAPL was a couldn't miss at $700 ($432.19).

     

    Of course, he had quite a call on Bear Stearns in the financial sector....couldn't buy enough of that one at $30 or so......although now he says he never said that (of course).

     

    Crammer is a great entertainer. "When he ran his hedge fund..." not so much (unless he had the first call on a Fidelity buy order, or a large block of stock which was being shopped around. Then he was awesome ; - )
    12 Jun 2013, 09:13 PM Reply Like
  • Joe Dirnfeld
    , contributor
    Comments (1128) | Send Message
     
    Don't remember the time Cramer was right last.
    12 Jun 2013, 11:16 PM Reply Like
  • jak279
    , contributor
    Comments (11) | Send Message
     
    How about LCC @ $14 a couple months ago?
    13 Jun 2013, 12:08 AM Reply Like
  • LMinAppleton
    , contributor
    Comments (41) | Send Message
     
    Does any serious investor actually watch CNBC?
    13 Jun 2013, 12:09 AM Reply Like
  • User 7140591
    , contributor
    Comments (16) | Send Message
     
    As a substantial Wells shareholder, I tend to agree that this bodes well for the stock. However, anyone who has frequent interaction with Wells on the brokerage side, or the mortgage side could very well wonder how on earth they have any customers whatsoever.
    13 Jun 2013, 05:23 PM Reply Like
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