On today’s STOP TRADING segment on CNBC, Jim Cramer made a call for a pairs trade on chemical and tech stocks: Cramer said that traders can ring the register in chemical stocks and they can throw the money into tech stocks for a few days. He thinks Applied Materials (NASDAQ:AMAT), KLA-Tencor (NASDAQ:KLAC), and Novellus (NASDAQ:NVLS) all have room to run.
Cramer also thinks that a research call saying that Crown Holdings (NYSE:CCK) is right on as a way to play Coca-Cola (NYSE:KO) earnings.
This wasn’t a pure ‘pairs trade’ but as a reminder, pairs trades lately have fallen out of vogue because the cost to carry the short (broker loan call rate) is higher, but they are mostly out of vogue because so many companies that were previously deemed too big are now able to be acquired.
Jon C. Ogg
July 17, 2007
Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.
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