On today’s STOP TRADING segment on CNBC, Cramer said that he went back over the Merrill Lynch (MER-NYSE) conference call and he thinks that the other mergers in the sector have gone well enough and thinks that Merrill Lynch (MER-NYSE) will buy Countrywide Financial Corp. (CFC-NYSE). He thinks when they would have liked to have bought it was 6-months ago and it would have been a mistake, but now he thinks this would make sense. This is part of the fact that Countrywide is the last man standing in subprime loans and is the winner. He’d buy the JULY CALLS on the stock (CFC-NYSE) as it is going higher and he thinks it could fetch $45.00 to $48.00.
Last night he noted Downey Financial Corp. (DSL-NYSE) as a merger pick, and that one is up almost 3% today on almost 4-times normal trading volume because of his stock tout. He noted this one again today.
Jon C. Ogg
April 19, 2007
Jon Ogg can be reached at firstname.lastname@example.org; he does not own securities in the companies he covers.