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Jeez, I love our financials. Citigroup, JP Morgan and Goldman Sachs are the cheapest three stock in the portfolio. That's why you will find Citi and Goldman in our Value Index located in our Investment Indices page. They all put up terrific numbers and they are all excellent second half stocks as they have tended to rally post C-Car and it seems to be happening again. It is obvious that all that matters to the market is the ten year but I don't mind that. It's going the way of the banks with higher rates. Plus the fed is going to continue to tighten. Both JP Morgan and Citi are still paying depositors less than you would expect and they are lending out at higher rates that you realize unless you are taking a loan from them.

The margins are excellent. CD rates are so low

You know that Lloyd Blankfein is an old friend. I do not know David Solomon. However, I am confident that the transition will be a good one. More important, I find Goldman's stock price and its ratio both to earnings and tangible book to be absurd. Since when does the premier franchise in an industry sell at a discount? I like the stock here very much.

JP Morgan's stock has gone up so much that we actually debated selling some last night. But even after this run it is selling at 12 times earnings. Too early to trim.

In the August Action Alerts PLUS members' call, Jim Cramer discusses why he still loves their financials stocks.

"Citigroup (C - Get Report) , JPMorgan (JPM - Get Report) and Goldman Sachs (GS - Get Report) are the cheapest three stocks in the portfolio," he said.

"That's why you will find Citi and Goldman in our Value Index located in our Investment Indices page," he said and encouraged members to use information as part of their research.

"Both JPMorgan and Citi are still paying depositors less than you would expect and they are lending out at higher rates that you realize unless you are taking a loan from them," he said.

So listen in as he talks about his relationship with former CEO and chairman Lloyd Blankfein and why they are not trimming any JPMorgan yet.


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