Mad Money

Stop Trading! Inflation = Cereal Killer

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The headwinds from sky-high commodity prices have become too much to handle for Kellogg and General Mills , Cramer said on Monday’s Stop Trading!.

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While both are “great American companies,” the inflation costs are “so out of control” now that Cramer believes it’s time to sell the stocks.

Cramer called Cleveland-Cliffs , the largest iron ore producer in the U.S., “on fire” and said it should be worth 50% more than its current stock price in a takeover.

Cramer also said Diana Shipping is an inexpensive way to play the booming shipping industry. Investors can use the Baltic Dry Index as a barometer for worldwide shipping demand.

And on the topic of the Merrill Lynch shakeup, Cramer said Stanley O’Neil should leave without a large compensation package since he “wrecked” so many employee bonuses by presiding over the firm’s huge write-downs.

Questions for Cramer?

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