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.
Chilean PowerhouseFor the next stock in his "Foreign Legion" portfolio of international stocks, Cramer returned to South America, this time to Chile, to recommend bottler Embotelladora Andina ( AKO-B), the largest non-alcoholic bottler in that country. Cramer said Andina is a powerhouse in South America, with monopolistic marketshare in the areas it operates. The company commands 67% share in Chile, 51% in neighboring Argentina, and another 57% in Brazil. According to Cramer, his investment thesis for Andina is simple: Normally bottling is a very stable and boring business, but with population booms and economic growth in South American cities, Andina is now a growth story. Cramer said Andina is lightly traded in the U.S., so he advised investors to trading in small increments and to use limit orders so as not to pay up for the stock.
Sad ScandalIn the Thursday "Sell Block" segment, Cramer returned to his mantra in his book Real Money by stating that "accounting irregularities equals sell." Cramer said when word reached the Street that the financial consultants of Huron Consulting Group ( HURN) were restating three years of earnings and restating guidance after it failed to account for acquisitions correctly, investors should've sold immediately. Cramer said that he hasn't seen accounting problems this bad since Arthur Anderson went belly up after the Enron scandal. Cramer said it is sadly coincidental that 12 of Huron's founding partners were alumni of the late Arthur Anderson, but it does raise eyebrows that a firm designed to help others avoid accounting problems is having accounting problems. But Cramer noted a silver lining in the Huron scandal that has made shares of the firm plummet 67% so far. He said that rivals FTI Consulting ( FCN) and Duff & Phelps ( DUF) have both been trading lower in sympathy for the failing Huron, instead of higher as they should. Cramer noted that even on Duff's conference call executives noted that they are "aggressively pursuing opportunities" relating to Huron. Cramer said he liked FTI Consulting more, but said that both companies will benefit from a fallen rival, both in manpower and client base.