Still Bearish on Financials - Stop Trading! (5/29/08)

Recap of Jim Cramer’s comments on Stop Trading! Thursday May 29.

Citigroup (C), Wells Fargo (WFC), Bank of America (BAC): Seabreeze Partners Founder, TheStreet.com columnist and long-time bear on financials Douglas Kass changed his position and said Citigroup could quintuple over the next three to five years. He also recommended WFC and BAC and said this is a "generational opportunity" to buy financials. Cramer disagrees because "so many things have to go right" with the economy, including housing, employment and easing of the credit crisis before all is well with banks. However, Cramer added if Kass is right about the sector; “you're going to have a rip, snorting bull here.”

Owens-Illinois (OI): The future is in glass rather than plastic, said Cramer since plastic bottles are thought to contain toxins and glass is a renewable resource.

Mastercard (MA): Cramer would hold Mastercard even after its significant jump on Thursday.

Joy Global (JOYG): JOYG jumped for joy 3% and Cramer says the stock would have been up $8 if the coal sector had not had a down day. “Joy Global is the answer,” Cramer said, “to getting the Saudi Arabia of coal” -- the U.S. -- “back in its rightful place."

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Comments

[Shane:]

Quintuple? Maybe, but that's a pretty tough sell for C.

But I do agree financials will come back and come back big. It's just a question of where the best plays are and it's a little early to tell yet.

2008 May 30 07:06 AM

[Shane:]

Hey, wait a minute ... did I just agree with Cramer?

2008 May 30 07:08 AM

[BSCLossMan:]

I think it's silly to say C can quintuple in 5 years. At the height of the voodoo-security bubble, C was only 55, and all that voodoo is disappearing, and earnings for banks have to be much lower going forward. Maybe, at best, a double in 5 years

2008 May 30 07:35 AM

[charley:]

did anyone hear c on the today show when he said "there running out of oil in the middle east"? after that remark i can never believe anything he says again. i recommended buying bac and citi to my son as a good start towards his retirement-hes only 21.

2008 May 30 09:01 AM

[chat100:]

Visa and Mastercard is a good investment.

2008 May 30 10:32 AM

[Emerald:]

Remember, Cramer is a short term trader. "C" is a god long term (five year) investment that should double for now.

2008 May 30 10:35 AM

[charley:]

cant wait till visa declares a dividend!!!! cramer is an idiot,. his ego cant fit in the same room with his body. read robert baird for true insight

2008 May 30 10:54 AM

[J Mueller:]

Hmmmm, Doug Kass or Cramer.

Cramer doesn't even deserve to have his name on the same page. I'd put my money on Kass.

2008 May 30 11:35 AM

[buckbuck:]

C uses smoke and mirrors, and double talk. On one hand they say they're not breaking the company up. On the other hand they are selling off 400 million in assets... which one is it??

2008 May 31 12:30 PM

[Longbow:]

Cramer is slightly better than throwing a dart at a board.
Maybe 5 %, at best. That's not good enough. Visa and Master Charge will prevail for several years. Both can return 25% in the next year from current levels. Wells Fargo, after it bottoms at
about 22 will return about 50% in twelve months and then go flat for a period. Of course, of these, VISA has the most speculative potential for gain, particularly if it solves its foreign challenges. For now, Master Charge has the edge on fundamentals between the two.

2008 Jun 03 12:40 AM