FEATURED SLIDESHOW
Who Is The Worst CEO?Mad Money needed new inductees for its
Wall of Shame, so we asked viewers for
nominations.
RECENT POSTS
- Lightning Round: Raytheon, Salesforce.com, Pepsi and More
- Lightning Round OT: Apache, Brocade, Allergan and More
- Cramer Goes One-on-One With Costco CEO
- Cramer: The Real Reason Stocks Fell Thursday
- Cramer: Investors, Don’t Do This
- On Wednesday's Mad Money: Costco & Cypress Semi CEOs
- Lightning Round: Toyota, Ford, Colgate-Palmolive and More
- Lightning Round OT: Hudson City Bancorp, Duke Energy and More
- Is This the Next 3Com?
- John Mack: Hero of the Credit Crisis?


Mortgage insurers like MGIC Investment MTG and PMI Group PMI were down about 10% with an hour left in trading on Tuesday. Cramer said these stocks “give the appearance of going down every day.”
That shouldn’t come as much of a surprise after a Lehman Brothers report saying, “credit is clearly unraveling,” “delinquent loans are worrisome” and “the estimates are for big losses.”
“These companies are on the ropes,” Cramer said.
MGIC [MTG
Loading...
()
] and PMI [PMI
Loading...
()
] have “sliced through their book value,” which is usually a bottom for these stocks because they’re supposed to be cash. Now with lowered earnings, they’re expensive on a multiple basis.
Cramer’s solution? These companies need to issue equity.
Cramer also admitted his latest buy call on Coach [COH
Loading...
()
] was off. COH just reported a disappointing quarter. “Something’s wrong,” Cramer said, and the blame can’t be placed on sectorwide problems in the retail.
Questions for Cramer?
Questions, comments, suggestions for the Mad Money website?



