Cramer's 'Mad Money' Recap: Why Citigroup Is a Buy (Final)
NEW YORK ( TheStreet) -- Looking for a stock that'll both pad your wallet and help reduce the federal deficit at the same time?
Jim Cramer told the viewers of his "Mad Money" TV show Thursday the stock they need to own is the once hated Citigroup (C). He gave five reasons why investors need buy into the stock.1. It's cheap. Cramer said while it may be hard to value Citigroup's assets or earnings potential, he values the $4 stock at 1.5 times its book value, making it worth at least $6 a share. 2. The government is ready to trade. Cramer said the government is set to trade its $5 billion stake in the company on Sept. 10. If Citi were to hit $6 a share by then, the government would make a $20 billion profit on that investment. 3. Citi is a global franchise. Cramer said Citigroup is a play on a global recovery, as it operates in 140 countries around the globe.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- 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 + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV