Jim Cramer’s Stop Trading!: RIG, BAC, CNK, SLB
“If you’re looking to bank on the 3-D market, look to Cinemark Holdings Inc. (NYSE:CNK),” Jim Cramer said on Tuesday’s “Stop Trading!” segment on CNBC. According to a Wall Street Journal article, the success of Avatar is making everyone want 3-D. “The catch is that you have to have movie theaters that have the capacity to show 3-D,” Cramer said. “Cinemark has it.” CNK has a yield of 4.8%, good fundamentals and the stock right now is inexpensive. Moving on to the financial sector, Bank of America Corporation (NYSE:BAC) reported on Tuesday significant gains in the number of modified mortgages through the government’s Home Affordable Modification Program. This means fewer homeowners will end up defaulting on their loans. Cramer told viewers that the technicals are aligning with the fundamentals, so he thinks BAC deserves to have this rally. “Merrill Lynch business could be on fire and we might not even see the problems at Bank of America,” Cramer said. “I like the mosaic of Bank of America.” Cramer holds BAC in his charitable trust. Finally, Cramer said Transocean LTD (NYSE:RIG) is a very cheap stock right now. “Plus, RIG is the only one that has the real capacity to drill in hard-to-get places,” Cramer said, “which is especially important given that new reserves are more difficult to tap.” He also mentioned that Schlumberger Limited (NYSE:SLB) is cheap. Get the scoop on tomorrow’s hottest trade ideas – TODAY! BeaconEquity.com PREMIER PICKS have an amazing track record. Join this select group and ride the profit wave!
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