Bottoming Stocks - Cramer's Stop Trading! (7/31/08)

by: Joan Wickham

Recap of Jim Cramer's comments on Stop Trading! Thursday July 31.

Washington Mutual (NYSE:WM): Cramer said “this is integral to my bottom thesis.” Suddenly outside investors are buying the stock. Cramer said “the banks led us down, now they're leading us back up. This is new leadership and I’m liking it.”  “I suspect they will be hit with employment numbers tomorrow,” Cramer said.

Bank of America (NYSE:BAC), Wachovia (NASDAQ:WB), Merrill Lynch (MER): Bank of America, Wachovis and Merrill Lynch had to come down. “Every time the banks have been hit, you want to buy and not sell,” says Carmer.

AIG (NYSE:AIG), Goldman Sachs (NYSE:GS), Citibank (NYSE:C), JP Morgan (NYSE:JPM): Fidelity took a big jump in their stake in AIG and Goldman Sachs. They also sharply reduced their interest in JP Morgan and eliminated all shares of Citibank. Weighing in on Goldman Sachs, Cramer stated: “I would own it forever for charity. Goldman Sachs is inexpensive vs. its historical price.”

Walt Disney (NYSE:DIS): Cramer said “theme parks were up” and he wishes the company's quarter was not focused on the last few week with its advertising decline as “that is all people are focused on.”  Cramer said Disney has “fantastic franchises” and had “remarkable quarter” He closed saying: “This stock is beginning to be beat up too aggressively,” but this “is a great stock if you only had to buy one for your kids.” Disney is a buy. 

Walter Industries (NYSE:WLT): Cramer fells that Walter Industries is “a possible takeover target.” He continues “Walter Industries is the ideal kind of conglomerate to buy in this environment.”

Unilever (NYSE:UN), Colgate (NYSE:CL): This stock had a one year high and a one year low. Cramer thinks this “the quarter was awful and this could be a share take. He is “wondering if Unilever is losing share to Colgate.” “This is a tug of war and Colgate is winning,” says Cramer.

KB Homes (NYSE:KBH): “The stock keeps going down” says Cramer. “I keep expecting it to take out its low but it hasn’t.” KB Homes is a buy.

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