GO
Loading...

Stop Trading!: A Starbucks Comeback?

A year after Cramer’s Fed rant heard ‘round the world, the market is in a different place, he said during Friday’s Stop Trading!.

Where the financial services industry was just beginning its steep decline last August, Cramer sees that downward trend coming to an end.

"I think that the bottom is in,” he said. “I don't think we violate the July 15 lows."

What’s his proof? Merrill Lynch set a precedent for other banks by selling off its bad debt and striking an agreement with bond insurer Securities Capital Assurance. The results can be seen in Wachovia today. The stock is up to $18 from single-digit lows and could push through $19 on takeover rumors by JPMorgan Chase.

In healthcare, Cramer said to stay away from Biogen Idec and Elan. His charitable trust sold some of its Schering-Plough shares after the Food & Drug Administration rejected approval for a drug that aids in recovery from anesthesia.

Under Armour, a “crazily overvalued” stock that’s been out of favor with Cramer for some time, is now inexpensive, he said. “I no longer want to sell” UA, he said. "I think it's bottoming."

Cramer also said that Crocs is “completely and utterly finished," but Starbucks might be ready for a comeback. He likened the coffee chain to McDonald’s just before that stock turned up.

"I think in 15 months,” he said, “Starbucks will be substantially higher."




Jim's charitable trust owns McDonald's and Schering-Plough.

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

Contact Mad Money

  • Showtimes

    U.S.
    Monday - Friday 6p ET
    Australia
    Saturday 8a, 1p, 7p SYD
    Sunday 12a, 1a, 8a, 7p SYD
    New Zealand
    Saturday 10a, 3p, 9p NZ
    Sunday 2a, 3a, 10a, 9p NZ
  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

Mad Money Features

  • Grab the latest CNBC gear from the NBCUniversal Store!

  • Get a behind-the-scenes look at how Cramer formulates his investment advice. "Inside the Madness" is a column, which features e-mails and more with Cramer and his researcher Nicole Urken.

  • You’ve always wanted to hit the “Hallelujah!” button. Here’s your chance.

Mad Money Moments

Cramer's New Book