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Oct.08

11:03 AM ET

Monday, 8 Oct 2007

Stop Trading!: Buy the Banks

Posted By:Tom Brennan

Topics:Stock Picks | Stock Market

Cramer had some investment suggestions for traders who think Washington Mutual's climbing share price, even after Friday's "totally horrendous quarter," is a sign of a bottom.

Anyone who believes the jobs market and U.S. economy have levered off should consider FirstFed [ Loading... () ]and Downey Financial [DSL Loading... () ], Cramer said, adding the FED could double. PFF Bancorp [PFB Loading... () ] PFB is also worth a look.

Baring PFB, "These guys are not good lenders," Cramer said. But they are the kind to get bought out by larger, better-run banks like Wells Fargo [WFC Loading... () ].

Lundin Mining [LMC Loading... ()

] has dramatically increased its drilling, giving Cramer reason to think it could get snatched up by Companhia Vale do Rio Doce [RIO Loading... ()

] or BHP Billiton [BHP Loading... ()

"This is what a lot of the companies looked like before they got gobbled up by the majors," he said.

Cramer also upped his price target on Google [GOOG Loading... () ] to coincide with Bear Stearns' call: $700.

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