Fearful Day for Financials - Stop Trading! (7/14/08)

by: Miriam Metzinger

Recap of Jim Cramer’s comments on Stop Trading! Monday July 14. Click on a stock ticker for more analysis.

IndyMac (IMB), Wells Fargo (NYSE:WFC), Washington Mutual (NYSE:WM), Downey (NYSE:DSL), Bank of New York Mellon (NYSE:BK), First Fed Financial (FED), Freddie Mac (FRE), Fannie Mae (FNM): Monday was a more fearful than the day Bear Stearns fell, said Cramer, because single-digit stocks were falling on a percentage basis, a truly “ghastly” development. Cramer would stay away from financials until the weak banks go under; “We just lost the first one, IndyMac. Give us the chance to lose some more.” Cramer says DSL and BK need to raise more capital and he thinks WFC and WM might not even make it through this crisis. Concerning FNM and FRE, Cramer predicts housing will bottom before financials and a good sign of the end of the fall will be a merger in the housing sector.

Oceaneering International (NYSE:OII), Schlumberger (NYSE:SLB), FMC Technologies (NYSE:FTI): Cramer would look at these stocks ahead of Bush’s lifting the ban on offshore building. Of course, Congressional approval is still required.

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