Jim Cramer's Stop Trading
Wells Fargo (WFC) looks like a good play right now on the bank rally, Jim Cramer said Monday on CNBC's Stop Trading! segment.
Cramer said the bank index is at a 52-week high and other big-name financial stocks have rallied sharply this fall. But so far Wells Fargo has been left behind, perhaps because investors are concerned about its exposure to the risky subprime lending business.
Cramer said it's OK to buy Wells here because the San Francisco-based institution "really knows how to handle itself." He said worries about the effect of subprime mortgages on big, robust lenders like Wells has been overstated, in that loan-loss "reserves haven't been tapped as much as you'd think." Cramer added that he wouldn't short subprime lenders because if the Fed cuts interest rates, the stocks will double.
Cramer also likes Akamai (AKAM), which he said is currently "the gold standard of high growth" in the technology business. He said the Web site enabler "reminds me of Cisco (CSCO)" when it came public, back in the early 1990s.
Cramer said he likes recent airline IPO Allegiant (ALGT), but would pass on recent Nasdaq 100 addition Level 3 (LVLT).
Published By TheStreet.com
Cramer said the bank index is at a 52-week high and other big-name financial stocks have rallied sharply this fall. But so far Wells Fargo has been left behind, perhaps because investors are concerned about its exposure to the risky subprime lending business.
Cramer said it's OK to buy Wells here because the San Francisco-based institution "really knows how to handle itself." He said worries about the effect of subprime mortgages on big, robust lenders like Wells has been overstated, in that loan-loss "reserves haven't been tapped as much as you'd think." Cramer added that he wouldn't short subprime lenders because if the Fed cuts interest rates, the stocks will double.
Cramer also likes Akamai (AKAM), which he said is currently "the gold standard of high growth" in the technology business. He said the Web site enabler "reminds me of Cisco (CSCO)" when it came public, back in the early 1990s.
Cramer said he likes recent airline IPO Allegiant (ALGT), but would pass on recent Nasdaq 100 addition Level 3 (LVLT).
Published By TheStreet.com
Labels: AKAM, ALGT, CSCO, Jim Cramer, Jim Cramer's Stop Trading, LVLT, WFC
posted by Stock Administrator @ 4:24 PM
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