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Averaging Down

This beaten-down financial's story is intact, so I'll buy some more shares here.
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I am going to buy another 100 shares of Morgan Stanley (MS) after the 3.5% decline in the shares today. I have written several times that I think this is one of the best management teams that is taking share from the other weaker players. I was clearly early in buying this stock, but I am still convinced that Morgan and Goldman Sachs (GS) are the only financials to own in this out-of- favor group, and when the tide turns, both will lead the way higher. We'll get earnings news next week from both firms, and I believe that will calm the fears of investors and show that they are surviving these tough times as strong leaders.

MS is the most diversified in the group and valuation is cheap at 1.3 times book. Its growth in global wealth management, prime brokerage and commodities should help offset pressures in its fixed-income real estate businesses.

After my purchase, the stock will make up 3% of my portfolio. I will buy another 200 shares should the stock continue to slide to its year low of $33 -- that would be a ridiculous value for this caliber of company.

Regards,

Jim Cramer

DISCLOSURE: At the time of publication, Cramer was long GS and MS.

Send email to james.cramer@thestreet.com.