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Tuesday, November 07, 2006

Cramer Calls a Short Squeeze in

On today's STOP TRADING segment on CNBC, Jim Cramer identified a potential short squeeze candidate.

Toll Brothers (TOL) is one where Cramer said it has already been downgraded. People can walk into it knowing that they can make money a couple months out even though good news is months away. If it was as bad as the company said then the stock would be down. Cramer thinks the worst is over for housing stocks, although even after a trough it won't just bounce back immediately.

Cramer then went over Yahoo! (YHOO). He is impressed that the bozos running it aren't killing it. He thinks that the company HAS to be acquired, but it won't be a private equity deal he thinks.

Cramer then called Crocs (CROX) the largest short squeeze coming. He said it has 12 million shares short and the bears will get eaten in it. He said CROX is a bad short and really good long.

Jon C. Ogg
November 7, 2006

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