Cramer's Stop Trading! It's All About Amazon (11/2/09)

Stocks discussed on Jim Cramer's Stop Trading! TV Segment, Monday November 2.

It's All about Amazon: Citigroup (C), Amazon (AMZN), Nordstrom (JWN)

Cramer thinks the government is about to sell its $34 billion stake in Citigroup (C), which will mean significant upside for the stock; “It just has that feel,” Cramer said. “It is so heavy it’s unbelievable.”

Three words sum up the situation in retail: "Amazon, Amazon, Amazon," (AMZN) said Cramer. The online retail giant's low prices have driven its competitors, most recently Nordstrom (JWN), into making huge discounts and offering free shipping for the holidays. Cramer says retail is stronger than expected, and strategies for getting rid of inventory have resulted in the sector's strong showing; “But I am surprised about the bargains.”

"These brick-and-mortar retailers are living in fear,” Cramer said of the threat posed by Amazon, “that they are about to have another leg down.”

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Comments

[najam:]

Cramer thinks the government is about to sell its $34 billion stake in Citigroup (C), which will mean significant upside for the stock; “It just has that feel,” Cramer said. “It is so heavy it’s unbelievable.”

If government sells its stake in C then how does that translate to upside for C? to the contrary i would expect the stock price to depress. any thoughts?

Nov 20 09:33 AM