Buy Home Depot: Stephanie Link, Director of Research for Cramer's Action Alerts Plus Portfolio, reveals why HD is the best housing recovery trade
Click here to watch the video.

From a recent Mad Money show: "This is another one that I really like, but it is a housing play. You've got dead money at best. Let's wait for this one too."

Buy - Price 53 on June 4
by Hilliard Lyons

Reiterating Buy. We believe that [the largest U.S. producer of paints and coatings] could make acquisitions and add units...on signs of a bottom in housing. Consequently, we...[see] a buying opportunity. Revenue for '08 could be slightly below the $8 billion level of 2007, even with...sales from recent acquisitions. Due to margin pressure, we now project earnings of $3.95 a share from $4.78 in 2007, excluding nonrecurring items, and well below our previous E$4.85.Our 65 target is based on a P/E of 16, within SHW's historic range, applied to our revised '08 EPS estimate...a depressed figure. Market cap: $6.4 billion.

uptrend

Sherwin-Williams (SHW) traded lower on almost twice its average daily volume Monday.

Sherwin-Williams (SHW) was upgraded from Neutral to Overweight, JP Morgan said. Stock looks cheap on an earnings basis and should soon be able to put its legal issues behind it.

great products and managment

Farallon Capital Management and its affiliates reported ownership of 6,437,500 shares (5.2%), after buying 2,053,900 from Dec. 6 to Jan. 9 at $52.08 to $62.24 each.

employeer

History

Its all been painted.

Paint maker Sherwin-Williams (SHW) also faces potentially significant risks from litigation, says Rodelli. The threat to Sherwin-Williams comes from a recent ruling by a Rhode Island state judge, upholding a jury verdict that found the Cleveland company guilty of creating a "public nuisance" and health threat with its lead paint products, sold many decades ago.

The company's valuation "doesn't reflect the significant risk," insists Rodelli. If law firms begin to see lead-paint litigation as "an attractive return on investment," he adds, today's trickle of cases could turn into a torrent.