Cramer's Stop Trading! Citigroup Is Not a SpeedBoat (1/20/10)

Includes: BAC, C, HUM, MDT, UNH
by: Miriam Metzinger

Stocks discussed on Jim Cramer's Stop Trading! TV Segment, Wednesday January 20.

United Health (NYSE:UNH), Humana (NYSE:HUM), Covidien (COV), Ciitgroup (NYSE:C), Bank of America (NYSE:BAC)

Massachusetts Senator Scott Brown's victory left the Democrats reeling and has made the future healthcare reform more complex. However, there is one clear move investors should make: Cramer thinks Medicare-related HMOs should be sold in case the government wants to make spending cuts. "They should be sold right now. They could be losers either way here." He singled out United Health (UNH) and Humana (HUM) as companies that should be sold, but likes healthcare stocks like Covidien (COV) which report good quarters. He thinks Covidien's quarter was so strong, it could have risen $5 on a good day (it rose $2 on Wednesday).

Cramer likes Bank of America (BAC), and would buy it now that bad loans are peaking rather than waiting for a strong 4Q report. He dismissed rumors that Citigroup (C) CEO Vikram Pandit may get fired when he has made significant cost cuts and has "delivered the numbers." Cramer urged investors to keep in mind that "Citigroup is an aircraft carrier, not a speedboat." He thinks the stock's low is at its secondary offering price of $3.15.


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