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Time to Buy Carnival?

The worst may be over for the cruise ship industry, “Mad Money” host Jim Cramer said Thursday. In fact, he thinks it’s a good time to start buying Carnival.

Carnival is the parent company of the Costa Concordia, which ran aground off Italy in January.

“When it comes to the cruise business, I think we’ve already reached the point where the worst may be over,” Cramer said. “And when things get back to normal, the cruise business is actually pretty fantastic.”

The business is dominated by Carnival and Royal Caribbean , and Cramer prefers Carnival.

Here’s why: Carnival is bigger and is down 2 percent year-to-date. Royal Caribbean is up 17 percent. More important, Cramer said, is Carnival’s 3.1 percent yield that pays you to wait.

However, it’s also important to consult the charts to “figure out if you’re bottom fishing, or if you’re actually trying to catch a falling knife,” he said.

Two highly regarded Wall Street technicians, Dan Fitzpatrick and Caroline Boroden, believe the technical indicate the downside for the cruise lines is pretty limited.

While the chartists prefer Royal Caribbean, Cramer’s sticking with Carnival. However, he would take your time buying and nibble at it on any pullback.

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