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Two Stocks on Sale

These holdings have strong long-term fundamentals and are attractive at current prices.
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While the focus this morning has been on earnings, I also want to make two trades after you receive this Alert. Yamana Gold (AUY) is trading down to around $13.58 this morning, as some of the momentum players appear to be exiting the gold sector.

But I have a longer-term outlook on Yamana and gold in general. Demand remains strong across the globe, and I believe the company will ultimately achieve its 30% annual production target.

You readers know that I like to pick away at quality names when they're on sale, and this purchase gives me a total of 9,500 shares of Yamana Gold, or 3.6% of the overall portfolio.

I'm also going to add 500 shares of Owens-Illinois (OI) , here around $58.13. The stock is down about 2 points from my initial purchase Monday, though the fundamental outlook has not changed.

The company remains a solid play in the shift away from plastic toward glass food and beverage containers. Not only is glass friendlier to the environment to recycle, but there's a growing fear about toxic chemicals being transferred from the containers.

Add in the fact that Owens-Illinois generates 70% of its revenue outside of the U.S. and has the pricing power to enact 5% to 7% increases across the board this year, and I believe the stock is attractively valued at 14 times conservative 2008 earnings estimates of $4.16.

I like to scale into new positions, and this offers me a chance to lower my cost basis while building my stake in Owens-Illinois to 1,500 shares, or 2.5% of the overall portfolio.

Regards,

Jim Cramer

DISCLOSURE: At the time of publication, Cramer was long AUY and OI.

Send email to james.cramer@thestreet.com.