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Mad Mail: A Trade on China’s Stimulus?

Booyah skeedaddy!: No one is talking about People's United! The company seems to be well positioned compared to many other banks, and is among those banks that DID NOT take any TARP money. It's currently smack in the middle of the 52-week high/low range, but the dividend payout is more than its EPS. Should that be a concern or should I be buying into PBCT at these levels? --Kane

Cramer says: “I am recommending no banks. I am recommending no banks because ever since I told people to sell Hudson City Bancorp when it was much higher, I have watched even the best banks go down. I know better than to get in front of a snow plow.”

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Jim Cramer: I have a question with regard to what you said about the Chinese market the other day. You said the demand for iron ore, copper and steel in China is starting to appear. What about aluminum? Is there a play that could benefit off China's growth and our proposed stimulus plan? --Dave

Cramer says: “Dave, you are spot on. It is true, aluminum is starting to move up. That’s a very good call. I think that Alcoa at $8 could have $2 to the upside. I would buy Alcoa .”

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Dear Jim: Could you update us on the status of the uptick rule? Now that Chris Cox is no longer at the SEC, will the Bulls have a level playing field with the Bears? I hope the rule is reinstated, or the thumb suckers on Wall Street will continue to destroy the wealth of American investors. Thank you and keep up the good work. --Scott

Cramer says: “I’m putting together a special on what Mary Schapiro, the new SEC chairwoman, should do, and that would be exhibit A of what she must do…she does not strike me as someone who’s willing to break with tradition…so it’s going to take some prodding before we think we win her over to our position.”

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Jim: How is it that oil prices are dropping or staying the same, but gas prices are going up? Supply is up and demand is down - shouldn't that force gas prices down? --Michael

Cramer says: “This is what’s known as the crack spread. You’re absolutely right. Sometimes it lags. Sometimes it depends on what Mayan crude’s priced at. That’s where we import a lot of oil…you want to buy Marathon Oil or Valero, because those are the guys that are scalping that little bit of money. Now just to be clear: I typically do not like the refiners, which is why I mentioned Marathon, because that also has exploration and production. But the refining margin’s way too big because I paid $2.05 [per gallon of gas] this weekend, and oil’s back to where it was several years ago. You’ve got a good idea. I’m going with it, Michael.”








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