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.
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