Cramer's Stop Trading! The Best Strategy on Earth (10/9/09)

Stocks discussed Jim Cramer's Stop Trading! TV Segment, Friday October 9.

Citigroup (C), Occidental Petroleum (OXY), Liz Claiborne (LIZ), JC Penney (JCP)

Cramer expects Citigroup to beat earnings estimates and bring its $5.65 book value higher over time. However, Cramer criticized the bank's move of selling Phibro, its commodities division to Occidental Petroleum because Washington disapproved of the $100 million paid to one of Phibro's traders. Cramer thinks the government should sell its 34% stake in Citigroup.

Liz Claiborne's exclusive deal with J.C. Penney may prevent further losses but will curb growth. Cramer would sell LIZ.

Cramer advised Khaldoon Khalifa Al Mubarak, CEO and managing director of Mubadala, Abu Dhabi's major sovereign wealth fund, that he should buy up failing banks. "It's the best strategy on Earth," he said.

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Comments

[Maxe Paul:]

Buy up failing banks? Sounds like very good advice, invest your soveriegn wealth fund into a falling currency and failing bank/s.

Im sure Khaldoon Khalifa Al Mubarak laughed his head off.

Oct 12 08:06 AM

[Nadia Kageff:]

I love my gold stks. (IAU). I am afraid of bank stks., but today I feel Banco Santander(BSBR) is going to be a money maker because
of the Olimpics. My next pick is Blackstone, (BX).

Oct 12 12:51 PM

[Benny D.:]

BX is a good dividend play also. I also agree with MAXE, why the heck would someone with a sov. wealth fund come here to buy up overleveraged banks?

BD

Oct 12 08:22 PM

[realold:]

Good stocks. Terrible spelling.


On Oct 12 12:51 PM Nadia Kageff wrote:

> I love my gold stks. (seekingalpha.com/symbo...). I am afraid
> of bank stks., but today I feel Banco Santander(seekingalpha.com/symbo...)
> is going to be a money maker because
> of the Olimpics. My next pick is Blackstone, (seekingalpha.com/symbo...).

Oct 12 08:32 PM

[Don-n-ABQ:]

If the Middle-Eastern SWFs buy up the top 10 American banks (or even 25%-40% of each), then the banks lend money, we spend the money, which means their return comes back to them in the form of oil consumption.

It is called "priming the pump" and it is a great idea (short term). The price of oil goes through the roof, the banks rally from the earnings they make from fees, SWFs make money off of the fees and then the oil. They get a double-barreled blast of windfall.

Of course, somewhere down the road, we still have to go to rehab. This is the same business model of the crack dealer giving away the first few bags to the customer for free. It only prolongs the inevitable of actually fixing the problem and getting help. That means less "toys" and more savings.

But, by then the markets rally for the next ten years and the SWFs and Cramer make an absolute ton of money.

Hey man, need a fix?

Oct 13 02:47 AM