Cramer's Stop Trading! Meredith Whitney's Big Splash (10/13/09)

Stocks discussed on Jim Cramer's Stop Trading! TV Segment, Tuesday October 13.

Agnico Eagle Mines (AEG), Goldman Sachs (GS), Citigroup (C)

Cramer thinks Meredith Whitney's downgrade of Goldman Sachs is an attention-getting gesture to impress clients, now that she is head of her own firm. Her move might not have been so good for clients who wanted discreetly to sell Goldman, and the creation of a "maximum fear factor" might be inconvenient for those investors. However, the exposure was the main goal: "She likes to make a big splash," commented Cramer.

Cramer questions the timing of Deutsche Bank's upgrade of Citigroup ( right before its earnings report), but Cramer praised the note of caution in their optimism, since they took a long-term bullish view. Cramer said the best sign is that there actually is an earnings model for Citigroup, something that has been lacking the last couple of years.

With major capital expenditures behind it and gold increasing in value, Agnico Eagle Mines seems poised to raise its dividend. However, Cramer would let gold drop $15 to $1,045 an ounce before buying AEM.

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Comments

[Alan Young:]

Cramer accuses Meredith Whitney of wanting to "make a big splash"? That's beyond hilarious! Cramer is the guy you can't get anywhere near without a wetsuit !

Oct 14 11:18 AM

[Graham and ...:]

Meredith Whitney is reasonably serving the interests of the investing public (where her new clients will come from) with her very visible public statements. This doesn't exactly help her current clients, but she probably doesn't have very many at this time.

The problem with the best forecasters is that they go "off the screen" once they hit a critical mass of clients (e.g. Buffett).

Oct 14 05:34 PM

[William Taylor:]

as far as I am concerned Whitney is just another analyst who is full of baloney.

Oct 15 09:44 AM

[wan65:]

Whether you like Cramer or not, MW IS trying to "make a splash". She has started her own firm and was on Squawk Box to promote that a few weeks ago. Having said that, CNBC trumpets everything MW says. (over and over and over) So... is that really her fault? I think the point that all of this will make the market move a little is true. IF you are one of her clients, hopefully you were told this BEFORE she announced her opinion to the world...

Oct 15 12:23 PM