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Stop Trading!: Don't Buy These Banks

The Federal Deposit Insurance Corp. released its list of troubled banks Tuesday afternoon. The number rose this quarter to 117 from 90 at the last report. The list, though, consists of only numbers, no names, so there’s no definite proof that any specific bank is mentioned. Cramer has his own ideas, though.

BankUnited received notice from federal regulators that it needed to raise $400 million in capital or risk a capitalization downgrade, Cramer said during Tuesday’s Stop Trading!, and Downey Financial and Corus Bankshores are in similar positions. IndyMac, he pointed out, also got a notice to raise capital just before it went under. So investor might want to stay away from these three banks.

Switching to energy, Cramer called trading on the possible approach of hurricanes “a very dicey thing.” That kind of play puts you in names like Oceaneering International and Bristow Group, which will decline if the hurricane takes an unexpected turn.

Given the strength of natural gas right now, Cramer would rather see investors in Nabors and Halliburton. These oil-and-gas services names should get plenty of business considering the amount of drilling being done by XTO Energy and Anadarko Petroleum . Cramer also praised Anadarko for its huge buyback, 18% of shares outstanding, saying the company is “swimming in cash.”

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  • Jim Cramer

    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."

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