Jim Cramer's Stop Trading May 27th
The banks and the homebuilders won't go down, Jim Cramer said on CNBC's "Stop Trading!" segment Tuesday.
"These companies continue to attract investors," he said. He pointed to Standard Pacific's (SPF) ability to raise capital today.
Cramer said this news is broadly bullish for the homebuilders, who may receive further capital infusions from hedge funds. "If you're emboldened, you'll come and buy another homebuilder," he said. He said National City (NCC) had shown similar ability to raise capital earlier this year.
Cramer: Housing Relief Is in Sight
On the other hand, Cramer expressed concern about Bank of America's (BAC) decision to buy a bigger stake in China Construction Bank. "I threw my hands up with this one," he said. He pointed out that Bank of America already has its hands full with its intended acquisition of Countrywide Financial (CFC). "I see a dividend I'm worried about," he said.
Cramer said $130 "seems to be this iron floor" in the PHLX Housing Sector Index, Cramer said. "March to April shows when you cut numbers people buy," Cramer said, indicating that there may be a bottom in this space.
Cramer ended the segment by pointing out that Apple (AAPL) and MasterCard (MA) are the "momentum plays of a lifetime."
Published By TheStreet.com
"These companies continue to attract investors," he said. He pointed to Standard Pacific's (SPF) ability to raise capital today.
Cramer said this news is broadly bullish for the homebuilders, who may receive further capital infusions from hedge funds. "If you're emboldened, you'll come and buy another homebuilder," he said. He said National City (NCC) had shown similar ability to raise capital earlier this year.
Cramer: Housing Relief Is in Sight
On the other hand, Cramer expressed concern about Bank of America's (BAC) decision to buy a bigger stake in China Construction Bank. "I threw my hands up with this one," he said. He pointed out that Bank of America already has its hands full with its intended acquisition of Countrywide Financial (CFC). "I see a dividend I'm worried about," he said.
Cramer said $130 "seems to be this iron floor" in the PHLX Housing Sector Index, Cramer said. "March to April shows when you cut numbers people buy," Cramer said, indicating that there may be a bottom in this space.
Cramer ended the segment by pointing out that Apple (AAPL) and MasterCard (MA) are the "momentum plays of a lifetime."
Published By TheStreet.com
Labels: AAPL, CFC, Jim Cramer, MA, NCC, SPF, Stop Trading
posted by Stock Administrator @ 9:49 AM
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