Cramer's Stop Trading! Citigroup Is Red Hot (8/11/09)

Stocks discussed on Jim Cramer's Stop Trading! TV Segment, Tuesday August 11

Citigroup (C), Well Point (WLP), United Health Group (UNH), Cigna (CI), NYSE Euronext (NYX), Federal Realty Investment Trust (FRT)

Cramer says Citigroup has been "red hot" and should reach $6. He welcomed the bank's TARP report which was essential for fixing its PR problems. Cramer says it is time to stop seeing Citigroup as "public enemy number one."

Strong performance from WellPoint, United Health and Cigna is a sign that Obama's public-option plan is probably not going to have legs. Cramer would buy Well Point, because it has the least exposure to Medicare Advantage.

IPOs are on the rise and so is NYSE's share price. Cramer notes Federal Realty Investment Trust is up $2 from its $57.50 secondary offering. The strength of Federal Realty is a sign that commercial real estate might not be so damaged and that the economy may be a lot stronger than people think.

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Comments

[Sailorman:]

All you have to do is open your eyes and see all the empty buildings and you can tell how commercial real estate is! Down the tubes!

Aug 12 09:58 AM

[SivBum:]

Wish Cramer told us when C was sitting near $1 or $2 instead of at $4. But, better late to the party than missing out altogether.

Aug 12 11:25 AM

[CMMF:]

He did. He told us it was a spec buy back at $2.60
and to do your own research . That is when I decided to get in.


On Aug 12 11:25 AM SivBum wrote:

> Wish Cramer told us when C was sitting near $1 or $2 instead of at
> $4. But, better late to the party than missing out altogether.

Aug 12 12:27 PM

[twinnkie:]

To big to fail .97 was the time to get in look at aig .

Aug 12 12:47 PM

[AndrewBaker:]

With all the hype, Citi and all the big financials are going up regardless. Forget the economy, forget non-performing loans, forget commercial real estate is headed down; just buy the financials. But don't believe it will last: stay close to your sell button or telephone and hope you can get out first when the first sign of the reversal shows. Wish I knew when that will be, but then, don't we all?

Aug 13 08:43 AM

[Zeppelin:]

I don't view them as Public Enemy #1

I view them and their being BAILED OUT Twice by the Taxpayers as Public Enemy # 4.

Right After Public Enemy #1 being THE FED (Under Greenspan and Bernanke)

Public Enemy #2 The Treasury Dept. (Under Paulson)

Public Enemy #3 Goldman Sachs (And Paulson)

Public Enemy #4 Citigroup

Public Enemy #5 AIG

Public Enemy #6 Bank of America

Do I need to keep going?

Aug 13 08:58 AM

[JAMES CARLINI:]

"The strength of Federal Realty is a sign that commercial real estate might not be so damaged and that the economy may be a lot stronger than people think."
______________________...
I don't think real estate has hit bottom yet in both residential AND commercial.
And, there is going to be a shift in how you appraise commercial real estate (more on that later)

Read this as we are in a Real Estate Quagmire:
www.carliniscomments.c...

Aug 13 09:28 AM

[bexe:]

Toxic assets have yet to be dealt with. They have to go somewhere, even it is swept under the rug, we will eventually trip over it. The non-performing loans are only starting to surface like dirty, bloody zits. It is not going to be pretty. Plus the fact that goods going out the door and the fall in new investments, don't tell me we are anywhere close to recovery. In my view, the market is way over-priced. When you have stats like Germany where their factories are starting to hum, then I may get more excited.

Aug 13 03:25 PM

[Value Added:]

I read this piece because I thought the title was sarcasm - surely the man cannot be serious. Then when I read: "The strength of Federal Realty is a sign that commercial real estate might not be so damaged and that the economy may be a lot stronger than people think.", my mouth dropped.

IF Citigroup had no friends in government, I would think about shorting them. Regarding commercial real estate, ask anyone - I mean anyone - close to that industry and you will hear the anguish. The only REITs that are doing well are those that lease to medical-related businesses; all the rest are losing money. General commercial is a pending storm. Do your homework before you take the advice above.

Aug 13 07:50 PM

[Wurly:]

I concur regarding AIG. Contrarian ways pay off big time! FRE is beckoning too.

Aug 14 08:10 AM

[bobomite:]

I think the previous and current administration have both shown that they will do anything and everything to keep the big banks afloat. Hmmm, reminds me of the "implied gov't backing" of a couple other GSEs.

So, my prediction is that their stocks will run up, the banks will take more risky moves, and when the price starts falling you know that the insiders got the word that there would be a partial takeover.

Then after the price collapses, they will buy the stock at $.15 a share and enjoy the miracle bounce when the bad assets are stripped and the company released from bankruptcy in an amazingly short time.

Well, at least we all learned something from the big credit bust. I think we learned "rinse, repeat."

Aug 15 06:00 PM