Mad Money

Buy DuPont

Cramer on Dupont

The Federal Reserve announces a plan to offer banks $200 billion more in liquidity, and the Dow spikes 417 points. But don’t think this is the bottom we so desperately want.

It was just another oversold rally, Cramer said during Tuesday’s Mad Money. Market sentiment had pushed stocks so low the prices were too cheap for investors to ignore.

But he believes the bump is temporary. Until home prices – the epicenter of this mess – turn up, Cramer said, we won’t be bouncing back.

There’s always a bull market somewhere, though, or at least some bullish stocks, and Cramer seems to think DuPont makes the cut. Yesterday, he listed the only four situations that warrant opening your wallet in this environment, and one was for high-quality stocks with an upcoming catalyst. That’s DD.

This chemical company, which also has its hands deep in agriculture, has an investor conference this Friday, March 14, and Cramer’s expecting DuPont to announce good news, especially from the ag division. It could be about the product pipeline, the value of DD’s target seed markets, or maybe – and Cramer admitted this was a long shot – the company’s even spinning off the whole ag business.

There’s the potential for good news from the chemicals side, too.  Either way, Cramer recommended buying half a position in DD before Friday. (The stock’s recent run prevents him from telling you to buy more.) In this market – even after a $200 billion bonus from the Fed – you can’t afford to miss an opportunity to make money.

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