Jim Cramer's Stop Trading! 10/26/07: Merrill's Second Chance

Includes: CFC, HOV, KBH, MER, PHM
by: Miriam Metzinger

Recap of Jim Cramer’s comments on Stop Trading! Friday October 26. Click on a stock ticker for more analysis:

Countrywide (CFC), Hovnanian (NYSE:HOV), Pulte (NYSE:PHM), KB Homes (NYSE:KBH), Merrill Lynch (MER): Countrywide's 30% rally may mean a speculation opportunity in hard-hit homebuilding stocks. HOV, PHM and KBH may be worth a risk before the Fed's interest rate decision on Wednesday, said Cramer. Friday's short covering on CFC may have a repeat performance in these stocks. Cramer has faith in MER's CEO, Stan O'Neal and thinks the writedown headache early in the week was unfair. "I believe in second chances," he said.

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