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Rate Cut! Here's What Cramer's Doing

Cramer's getting into action after the Fed got into action cutting rates.
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Dear Action Alerts PLUS Subscriber,

Listening to the Toll Brothers (TOL) conference call, and I've got to tell you that everything still looks great over there. Business looks good across all of the company's regions, except for its smallest region, the Midwest. Orders doubled in the Southwest properties, as compared with the prior year.

This latest surprise 50 point rate cut also supports the thesis that lower rates will extend the current housing boom beyond the current three quarters of visibility Toll has in its backlog.

After you read this note, I will take advantage of this rate cut to add 1,000 shares of Toll. This brings my total position up to 4,000.

Regards,

James J. Cramer

DISCLOSURE: At the time of publication, Cramer was long Toll Brothers.

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 has registered as an investment adviser with the U.S. Securities and Exchange Commission. We are not a registered broker-dealer.

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