Cramer Talks on Lender Problems & Retail Winners

Stock Tickers: HBC, NEW, LEND, JCP, RL, JWN, FD, SKS

On today’s Wall Street Confidential video on the TheStreet.com, Jim Cramer was on discussing retailers and lenders.   HSBC (HBC) is bringing lenders down (HBC down 2.5% today).  ING came into the US softly just wanting the bank accounts but Cramer said HSBC (HBC) bought business by being a lender of last resort which is different and were willing to lose money by high interest checking to win consumer business.  New Century (NEW) expects mortgages to drop 20% as they tighten lending standards, and its shares are being hit 28% today.  That is also hurting Accredited Home Lenders (LEND) by over 7% and Cramer thinks the whole group is coming down further and he’d give it a couple days before tip-toeing in.

He also said investors want the next big name in retail and apparel.  Cramer said Federated (FD) has fixed the May Stores integration problem, and JCPenney (JCP) being down off of slightly missing same store sales estimates may be an opportunity to get into the stock.  Ralph Lauren (RL) is also one that has tremendous momentum and short sellers may get hit.  He was also briefly positive on Nordstrom’s (JWN) and Saks (SKS) on this.

Jon C. Ogg
February 8, 2007