This Day On The Street
Continue to site
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

Cramer: Be Careful How Negative You Are On Citi

NEW YORK ( TheStreet) - Jim Cramer applauds Citigroup for their increase in transactions, what he is calling the "American Express-ization" of the company.

This morning, Citigroup (C - Get Report), was the third big bank to report better-than-expected earnings in the most recent quarter. For a full run-down of the results, see my colleague Antoine Gara's story here.

Key for Cramer was that Citi's quarter provided a blue print of where the company is going. He explains, "the blue print is one of having less credit risk, of avoiding markets that are difficult to fathom (i.e. Citi has little European exposure)... and really being involved in countries in Latin America and Asia that are clearly growth countries."

Cramer recommends people who think China, India, Brazil, Mexico, Singapore and Korea have the potential to experience a resurgence in growth keep their eye on Citi. It's becoming more of an international transaction company and less of a bank.

While bank earnings are off to a good start, Cramer warns that June's performance will be important in determining if the sector is still thriving or if it is beginning to fall off a cliff.

All told, Cramer says that with a tangible book value of $51.50 per share, giving up on Citi is foolish. His response to concerns that book value is inflated is to say that even if it is inflated by 20%, the stock is still a buy.

-- Written by Lindsey Bell in New York.

>To follow the writer on Twitter, go to Lindsey Bell.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AXP $65.68 0.00%
C $46.68 0.00%
JPM $63.79 0.00%
WFC $50.59 0.00%
AAPL $93.64 0.00%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs