Jim Cramer Blog

Lehman (NYSE: LEH - News), JP Morgan (NYSE: JPM - News) and Bear Stearns (NYSE: BSC - News): After Thursday's carnage, Cramer has put financials on probation, and outlined necessary factors that would allow these stocks to perform again. First, Wall Street should cut its estimates, second, there should be layoffs in mortgage and corporate bonds departments. Third, the companies have to keep better track of what they have been losing to sub-prime debt and hung bridge loans. Cramer would stay away from JPM because of its connection with corporate debt and would not touch any housing stocks.
Pepsi (NYSE: PEP - News), Kellog (NYSE: K - News), Bunge (NYSE: BG - News), Celgene (NasdaqGS: CELG - News), Schlumberger (NYSE: SLB - News): Cramer would go "bottom fishing" in soft goods, such as Pepsi, which is down and Kellogg, whose quarter was "thing of beauty." He also likes agriculture and healthcare, especially BG and Celgene. Since Exxon is not drilling enough oil, Cramer predicts SLB will be called upon to come to the rescue. He also reiterated his praise for the tech sector which is "hot" in late summer.

Labels: BG, BSC, CELG, Jim Cramer, Jim Cramer's Stop Trading, JPM, K, LEH, PEP, SLB