On one of today’s videos of Jim Cramer on TheStreet.com, Cramer reviewed China growing too fast and how to play it….Cramer said this is not new and we’ve seen it before with China pulling back on too much growth.
Cramer has a play, and it is in the mineral conglomerates: BHP Billiton (BHP-NYSE), Lundin (LMC-NYSE), Freeport McMoRan (FCX-NYSE), Peabody (BTU-NYSE), and Arch Coal (ACI-NYSE) all have to retreat on this news. He even noted that they "have to go down, but then you have to buy them after they pul back" because China can’t effectively slow its growth.
Cramer thinks that Ameritrade (AMTD-NASDAQ) and E*Trade (ETFC-NASDAQ) are showing that the retail investor can be easily scared by a 500 point drop. Neither company got any boost to trading activities by lowering prices, so it was an inelastic situation and the free trading isn’t helping what he thinks is "the public missing out on a fabulous move."
Jon C. Ogg
April 19, 2007
Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.
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