Jim Cramer's Action Alerts PLUS

Dear Action Alerts PLUS Subscriber, Time for me to make the big change in financials. I have not seen any of the strength in the brokerage industry that I expected by now. In fact, the industry remains in the doldrums, courtesy of Enron and a remarkable inability of this new issues market to get unstuck. That means there will be another round of estimate cuts for the brokerage industry. Frankly, I am tired of getting hit by estimate cuts and I feel like I have enough exposure in the brokerage industry with Citigroup (C) . I initially bought Morgan Stanley Dean Witter MWD a long time ago and recently bought more because I believed that the worst was over for brokerage, for underwriting and for mergers and acquisitions. That was wrong. I examine my theses constantly. When a thesis goes awry, I change my position. My thesis on Morgan Stanley has now gone awry and I can't defend it anymore. One could argue that my last buy, which was done three points ago, was therefore stupid. When I bought that stock I thought that Enron would be isolated. It wasn't. I want to replace Morgan Stanley with a financial play that to me represents the future of banking in this country: Commerce Bancorp (CBH) . This New Jersey bank, an $11 billion in assets bank, is where my family banks. We bank there because it has non-bankers hours -- it is open every time I look -- they treat us fantastically and they have passbooks for kids, so my kids are learning to save. (They also have these great machines so my kids can bring in change and get it counted. The kids love going to Commerce Bank; it's like going to the mall.) In my community, every bank has been bought by another larger bank and my wife and I have taken our banking from one bank to another every three years. Now we have a bank with an officer who knows us, who treats us well. We have a bank that is a joy to go to. OK, it doesn't give us as good an interest rate as another bank may, but that just makes me want to buy the stock more. The people who run Commerce Bank understand convenience. They understand how to grow without taking on new risk. They understand how to win people over with service. Fortunately, my experience is not just anecdotal. It has been replicated by thousands of people in communities in New Jersey in the last few years. This is the kind of mid- cap growth company that could become huge and I think that it will be the wave of the future. After you read this, I am going to buy 1,500 shares of Commerce Bancorp. Regards, James J. Cramer DISCLOSURE: At the time of publication, Cramer was long Citigroup and Morgan Stanley Dean Witter. These Action Alerts are intended to provide opinions about and analysis of stocks and markets. They are not intended to provide personalized investment advice. DO NOT EMAIL CRAMER SEEKING PERSONALIZED INVESTMENT ADVICE, WHICH HE CANNOT PROVIDE. Cramer welcomes your editorial comments at jjcletters@thestreet.com. James J. Cramer is a Markets Commentator for TheStreet.com and CNBC, and a director and co-founder of TheStreet.com. TheStreet.com is a publisher, and neither we nor Mr. Cramer is registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. From time to time, Mr. Cramer may write about stocks in which he has a position. In such cases, appropriate disclosure is made. Mr. Cramer must hold all securities in his Action Alerts PLUS portfolio for at least one month. In addition, he is not permitted to buy or sell any security he has spoken about on CNBC for five days following the broadcast. Mr. Cramer's Action Alerts represent his own opinions and should not be relied upon for purposes of transacting securities or other investments, nor should they be construed as an offer or solicitation of an offer to sell or buy any security. He cannot and does not assess, verify or guarantee the suitability or profitability of any particular investment. You bear responsibility for your own investment research and decisions and should seek the advice of a qualified securities professional before making any investment. Please note: Effective Feb. 12, 2002, the holding period for securities in Jim's Action Alerts PLUS portfolio changed from four months to one month.