This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

'Real Money' Radio Wrap-Up: Lost in the Supermarket

Focus is at a premium, Jim Cramer said Monday on his "RealMoney" radio show .

Citigroup's (C) earnings "stunk up the joint," Cramer said, because the company has too many moving parts that prevent it from achieving reliable growth. Cramer believes the so-called "financial services supermarket" model, once considered the way to go, is now to be avoided.

"Fees can't be hidden. Regulators are all over firms. Journalists are wise to the game," said Cramer.

Instead of owning an unwieldy amalgamation like Citigroup, said Cramer, the better move is to buy the "best of breed" companies in each of the arenas in which Citibank competes.

Breaking it down, that means buying:

  • In retail banking: Commerce Bancorp (CBH).
  • In credit cards: CapitalOne (COF).
  • In mutual funds: Legg Mason (LM).
  • In commercial lending: CIT Group (CIT)
  • In brokerage: Bear Stearns (BSC) or Lehman (LEH).
  • But don't jump in just yet. Based on what he heard -- or, more appropriately, didn't hear -- on the Citigroup conference call, Cramer said you can get a better entry price into some of these names by waiting a little while.

    "The earnings call was tough to understand and the analysts may have problems understanding what the company is," said Cramer. "Sandy Weill may have understood it, but the folks he left behind obviously do not."

    The result is that Citigroup may catch a few downgrades. That means investors can start picking up some of these best-of-breed financial names if they sell off on Citigroup's pain.

    One caller asked if, aside from Legg Mason, T. Rowe Price (TROW) was also a good asset manager to own. Cramer was very positive on T. Rowe Price, saying the company avoided the taint of scandal during the mutual fund trading probe.

    1 of 2

    Select the service that is right for you!

    Action Alerts PLUS
    Try it NOW

    Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

    Product Features:
    • $2.5+ million portfolio
    • Large-cap and dividend focus
    • Intraday trade alerts from Cramer
    • Weekly roundups
    TheStreet Quant Ratings
    Try it NOW
    Only $49.95/yr

    Access the tool that DOMINATES the Russell 2000 and the S&P 500.

    Product Features:
    • Buy, hold, or sell recommendations for over 4,300 stocks
    • Unlimited research reports on your favorite stocks
    • A custom stock screener
    • Upgrade/downgrade alerts
    Stocks Under $10
    Try it NOW

    David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

    Product Features:
    • Model portfolio
    • Stocks trading below $10
    • Intraday trade alerts
    • Weekly roundups
    Dividend Stock Advisor
    Try it NOW

    Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

    Product Features:
    • Diversified model portfolio of dividend stocks
    • Alerts when market news affect the portfolio
    • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
    Real Money Pro
    Try it NOW

    All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

    Product Features:
    • Real Money + Doug Kass Plus 15 more Wall Street Pros
    • Intraday commentary & news
    • Ultra-actionable trading ideas
    Options Profits
    Try it NOW

    Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

    Product Features:
    • 100+ monthly options trading ideas
    • Actionable options commentary & news
    • Real-time trading community
    • Options TV
    To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
    Submit an article to us!


    DOW 17,804.80 +26.65 0.15%
    S&P 500 2,070.65 +9.42 0.46%
    NASDAQ 4,765.38 +16.9840 0.36%

    Brokerage Partners

    Rates from

    • Mortgage
    • Credit Cards
    • Auto

    Free Newsletters from TheStreet

    My Subscriptions:

    After the Bell

    Before the Bell

    Booyah! Newsletter

    Midday Bell

    TheStreet Top 10 Stories

    Winners & Losers

    Register for Newsletters
    Top Rated Stocks Top Rated Funds Top Rated ETFs