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

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


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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.