On today’s STOP TRADING segment on CNBC, Jim Cramer discussed the rumors making the rounds about New Century (NEW) potentially filing for Chapter 11 protection after an activist hedge fund advisor quit the board of directors. Shares were down 20% on more than 36 million shares. This has also spilled over into DJIA stocks. Cramer said that this is a hangnail to the market and you shouldn’t be selling the other unrelated stocks and sectors on this. He even said the hits that some companies took to Long Term Capital in the 1990’s created a buying opportunity. Cramer has been saying that one of the sub-prime lenders will fail, but this is de-linked from the market.
On Camden Properties Trust (CPT) Cramer sees better opportunities since REITs are up so much. He does like JCPenney (JCP) and he thinks it will see $84.00 tomorrow from $81.00 today.
Jon C. Ogg
March 8, 2007
Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.