There may soon be a housing resurgence, Cramer said Monday, at least if bullish comments from prominent businessmen and recent data are any indicator.
Jack Welch joined the group of notable businessmen, who think housing could soon turn around. The former CEO of General Electric made bullish comments on housing while appearing on CNBC Monday. Meanwhile, pending home sales recently hit its highest level in 19 months. The National Association of Realtors’ existing home sales index rose by 7.3 percent from October to November while experts had only expected an increase of just 1 percent.
To play this potential housing resurgence, Cramer suggests Weyerhaeuser. The second-largest owner of timberland in the United States, Cramer said it’s more profitable and productive than its competitors. Cramer said its successes are, in a part, due to its fabulous management team.
The timber company’s stock sports a 3.2 percent dividend yield. It’s cheap, too, trading at a 30 percent discount to its net asset value. He recommends investors consider buying shares at current levels because by the time housing does actually turn around, it may be too late.
When this story was published, Cramer’s charitable trust owned Weyerhaeuser and General Electric owns 49 percent of NBCUniversal, which operates CNBC.
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