Raiding Washington Mutual
Washington Mutual, down 8% so far Friday, is the “raid du jour” stock, Cramer said during Stop Trading!.
Now that there’s no more “uptick” rule, much to the chagrin of the Mad Money host, short sellers are free to hammer down a stock for profit. That’s what’s happening to WaMu , Cramer said, calling it “a classic raid.”
“It’s how the shorts operate,” he said.
But what does Cramer think of WaMu itself? “I really dislike that stock – intensely,” he said. “But it has a great deposit base, and maybe it gets an $8 bid one day.”
The commodities market might not have reached bubble status just yet, but the speculation there is enough for Cramer to recommend the Chicago Mercantile Exchange, though not until the merger with the NYMEX is complete. Once that’s done, “I think [CME] is going to be really powerful,” Cramer said.
Lastly, Cramer recommended Foster Wheeler for anyone interested in a power-company play. As much as he likes ABB, the company has “too much nuclear” in a country where Americans are averse to building new plants. Foster Wheeler’s coal business, though, is “hot as a pistol.”
“I really like it here,” Cramer said.
Jim's charitable trust owns Foster Wheeler.
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