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Cramer to CEO: ‘I Like the Story’

Wednesday, 17 Apr 2013 | 6:28 PM ET
Realogy CEO: We're Very Bullish Now
Wednesday, 17 Apr 2013 | 6:25 PM ET
Richard Smith, Realogy CEO, explains why he is bullish on the housing market.

(Having trouble with the video? Click here!)

If the ups and downs of the market leave you gasping for air, Cramer has a suggestion.

"Take a breath for a moment and remember that, despite all the worries, there are still parts of this economy that are going strong," he said.

And one part of the economy that Cramer believes has enduring fundamentals is housing.

"It's not going to be derailed by European woes or a slowdown in China," he said. "The housing comeback remains strong," he said.

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To support his thesis Cramer pointed to the housing starts number released earlier in the week.

According to new data, U.S. builders started 1.04 million homes on a seasonally adjusted annual rate at the fastest pace in nearly five years.

"That's huge," he said. "It says to me the renaissance in housing is a multi-year theme that should keep powering forward."

Although Cramer has suggested many stocks as beneficiaries of this theme, on Wednesday's broadcast the Mad Money host focused on Realogy as a stock that belongs on the radar.

"It's a huge realtor that's the world's largest franchisor of residential real estate brokerages—the brands they franchise include Coldwell Banker, Century 21, Sotheby's, ERA Real Estate, and Better Homes & Gardens," he explained.

Last year this company was involved in more than a quarter of all existing domestic home sale transactions that involved a broker.

"That's how big they are," Cramer added. As a result they should participate in the surge of home sales underway across the country.

Skeptics may take issues with the guidance Realogy issued for the first quarter, but Cramer isn't concerned..

"The company is still looking for a sales volume increase in the low to mid-teens going forward, and that's pretty darned good," he said.

Also strong interest in a secondary offering from Realogy suggests to Cramer that investors share his enthusiasm.

"That secondary, alone, tells me there was nothing disappointing at all about the quarter, just more gibberish from people inclined to be bearish because they simply don't believe in the cycle," Cramer said.

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All told, Cramer is a buyer. "I like this story," said Cramer during his conversation with Richard Smith, the chairman and CEO of Realogy Holdings.

In fact Cramer has been a Realogy fan for a while. "I got behind the stock at the end of November at $37 and since then the stock has gained 21%."

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