When Life Hands You Lehman - Cramer's Stop Trading! (6/18/08)

Recap of Jim Cramer’s comments on Stop Trading! Wednesday June 18.

Potash (POT), Mosiac (MOS), Agrium (AGU): Cramer says fertilizer stocks are taking a breather, but the sector has been “the most powerful trend I have seen in my career since DSC Communications in the '80s.” He thinks seeds provide more potential for energy development than oil, since Congressional Democratic majority leader Nancy Pelosi is against drilling.

Lehman Brothers (LEH): Those wanting to know Cramer’s opinion of Lehman Brothers should read the bank’s conference call, particularly the Q&A section featuring Deutsche Bank's Mike Mayo. Cramer says it is very clear the company has had a horrible vintage of mortgages and does not know what is in its portfolio.

Goldman Sachs (GS): Of the best-of-breed investment bank, Cramer said, “All I can tell you is that the stock is higher in a group that is so awful that you can't even look at your screen, it's that bad. It is the only one that has a business model right now.”

Best Buy (BBY): Best Buy’s second day decline after a decent quarter is the “kiss of death” for retail. Cramer doesn’t think any stock in the sector can be bought if Best Buy does poorly, and thinks the group is the second worst after the banks.

Crocs (CROX): Crocks has a new closed-toe loafer, but when Cramer’s daughter said, “Dad, you cannot go outside in those shoes,” he decided the stock is a loser.

General Mills (GIS), Panera Bread (PNRA): Cramer admitted he was shocked that General Mills and Panera Bread are doing so well in spite of rising food cost. He credits the companies’ proprietary products, strong brands and loyal customers for their ability to raise prices and maintain earning. Cramer is bullish.

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Comments

[SuperG]

If Cramer allows his daughter choose his footwear, I've decided Cramer is a looser. But we already knew that anyway.

[mark van]

cramer is a used car salesman

[Jerry Dill]

Ouch, so many harsh words about Cramer!

[Keeping itReal]

I don't like Cramer's advice either.

[Tibis123]

For all of you Cramer haters... Cramer is the single most resourceful guy out there for individual investors. He provides individual investors with information that would take them longer time to collect. He highly emphasizes the need for doing your own research before acting on it since clearly investor's risk level varies from one investor to another. Most of my investement decision starts from his recommendation, followed by my own research to make the buy/sell decision. By doing so, I am already up 47% since December, 2006... So, all of you Cramer haters, think hard before you come down on him with your tastelessly and baseless comments.

[guliamo]

well well well... cramer is finally gotten with the program on Crox... it's about time too.. that slipper was out of style last year - and that's when most of us took our profits and ran! you lost 95% on the position... nice that you finally decided to sell... if I were cramer I wouldn't mention such a thing which only proves this guy is all over the place..

[francisschutte]

Cramer is without any doubt waking up people...making them ask questions. Such an action is always good!

[workedlate]

tbis......wake up ....single most resourceful guy out there for individual traders??????????lay off the Kool-aid dude......He hasn't been right on anything for about 14 months.......has no clue in bear market......if you have capital left go back to him about 6 months in to bull market......oh yeh...remember he called the bottom july 15 2008....oops he must have had gone for drinks with the other Tom Brown, who said don't be late and miss the financial rally ....ooops......wait for their excuses.....they will be classic just like cramers bears stearns tongue twister