Chrysler Collapse Boosts Biz for Parts Dealers
Cramer waved off criticism of Travelers’ latest quarter during Thursday’s Stop Trading!, saying the stock is a buy. Wall Street seemed to think the company suffered big investment losses, but the Mad Money host disagreed.
Travelers “has the single-best investment record of any insurance company,” Cramer said, “with the possible exception of Chubb.”
He called TRV down $1.50 an “opportunity.”
“This is your chance to get into Travelers,” Cramer said. “The bad news is out, if there really is bad news.”
In autos, Chrysler's bankruptcy is a boon to parts dealers such as AutoZone , Advance Auto Parts and Monro Muffler & Brake . Cramer said all three should trade together, though he prefers MNRO because it's the cheapest of the group right now.
Elsewhere in the market, Praxair and Air Products & Chemicals are “not true cyclicals,” as they are sidestepping most of the US’s economic woes. Both stocks are inexpensive buys, even after this most recent run.
Watch the video for Cramer’s take on natural gas stocks.
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