Citibank - On Guard! - Cramer's Stop Trading! (9/12/08)

Recap of Jim Cramer's comments on Stop Trading! Monday September 8.

Banks to Watch - Citigroup (C), US Bancorp (USB), Wells Fargo (WFC), BB&T (BBT)

Citigroup has some value because of its deposits, but the company must be on its guard, as it could be the next target of short sellers, warned Jim Cramer. “I am warning Citigroup right now that [hedge funds] are going to raid you,” he said. “Just get ready.” Cramer also said that He’s predicting many banks will benefit as the Federal Deposit Insurance Co. takes over failing institutions and sells their deposits at a discount. US Bancorp might be sought out by the FDIC to take on some of the deposits of bad banks. Elsewhere in the sector, Wells Fargo is being underestimated, Cramer believes, but he believes it's the best-run bank in America. Additionally, he said that BB&T could be ready to make acquisitions.

Low Cost Loans Possible – General Motors (GM) and Ford (F)

And the financials won’t be the only companies enjoying government intervention. Turning to the automakers, Cramer said he wouldn't be surprised to see government intervention for GM and Ford because too many states are up for grabs in the presidential election for nothing to be done. “I don’t think anyone is going to stand up and vote against GM and Ford in an election year,” he said.

Oil After Ike - FedEx (FDX), VF Corp. (VFC), Home Depot (HD) and Sears Holdings (SHLD)

Oil stocks may be up on the imminent landfall of Hurricane Ike, but if the storm doesn’t hit as hard as expected, Cramer said that oil could open Monday at $90 a barrel. The resultant lower gas prices will boost stocks like FedEx, VF Corp., Home Depot and Sears Holdings.  

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Comments

[Sailorman:]

Sears holdings is a big mystery! They know nothing about retailing and have never mad a penny in retail so why all the hype? Sears and K Mart are dinosaurs in the retail world. Bad stores, bad locations, and the wrong merchandise mix. What do they have to offer the consumer?

2008 Sep 12 06:36 PM

[BlueOkie:]

Sears great tools and work clothes. KMart "Blue Light Special". Shop on line and get better deals.

2008 Sep 13 09:35 AM

[otbricki:]

Sears also offers an excellent service network. It's a far better post sale experience to buy a major appliance from Sears vs. Best Buy etc.

2008 Sep 13 10:24 AM

[nyka:]

The vast majority of people who patronize Sears and KMart walk to the malls; they sold their vehicles, using the proceeds to keep from becoming delinquent on their mortgage payments.

2008 Sep 13 08:45 PM

[lepso:]

To Salorman, I may say that Sears is big and cumbersome. When the market (the economy gets slapped with $140 per barrel oil prices) gets scarred, stores like Sears who sell quality at a higher cost, they will be affected much more than a low price store with lower quality. I worked there as a consultant and can say that they were fair to the employees and as custumer, I have always been properly treaded.

2008 Sep 14 12:15 AM

[lepso:]

The folloing are companies that lost track of what they were doing. The priorities were not in line. They had lost "vision" and now seem to have found it, I hope. You can not always just go for the money, you have to have long range views (some call it gut feeling). This is what great CEO have and they are in high demand. So these companies (C, WFC, USB, BBT, F, GM » ) fall in that category and become the recommended stocks, btw Sears should also be in that.

2008 Sep 14 12:35 AM

[ATLBob:]

IMHO, Sears Holdings is more of a real-estate play than a retail play, since both Sears and KMart are well-worn and past their prime in the retail world. Eddie L is a pretty smart guy and picked up lots of commercial property at 'blue light special' prices when he took charge.

2008 Sep 14 01:19 PM