Fannie & Freddie Too Difficult - Cramer's Stop Trading! (8/25/08)

by: Joan Wickham

Recap of Jim Cramer's comments on Stop Trading! Monday August 25.

CEO Good Man - Nordson (NASDAQ:NDSN)

Erin Burnett and Jim Cramer talked about Nordson. Cramer called CEO Edward Campbell “candid, good man” and said there could be no doubt that he was doing a “great job” but that nobody will care about that after last week's earnings disappointment. Campbell said in an earlier interview on CNBC that Nordson was doing well in one segment due to a strong demand for chips but Cramer said, the company is also levered to SVUs.

Too Difficult – Fannie Mae (FNM), Freddie (FRE)

Shares of Freddie Mac and Fannie Mae have been volatile, swinging to the upside and downside. With Freddie and Fannie up 22% and 15%, respectively, Cramer emphasized that “the tape is lying today.” As for good price points to buy and sell these stocks, Cramer simply said: “I can't touch this.” It's too difficult to predict where they'll go next.

Financials - Sovereign Bancorp (SOV), Lehman Brothers (LEH)

Cramer mentioned Sovereign Bancorp. “The fact that Sovereign's not down is pretty interesting,” he said. Burnett asked Cramer whether Lehman Brothers could succeed if CEO Richard Fuld were to leave the firm. Cramer thought it could. “I think he's really paralyzed,” he said, regarding the CEO's having a difficult time handling Lehman's financial woes.

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