Switching from top stocks to one of the worst, this time on the Dow, Cramer made the same call on Citigroup that he had on Bear Stearns: Depositors have nothing to fear – the Federal Reserve will guarantee that money – but he can’t recommend owning the stock. In fact, the only banks he’ll get behind are JPMorgan Chase on a pullback, Goldman Sachs and Hudson City Bancorp.
As for Ford Motor’s sale of its Jaguar and Land Rover divisions to India’s Tata Motors, Cramer said the move was a way for Tata to “glam up its company.” Even though Tata got the two luxury brands for almost half of what Ford originally shelled out, Cramer said he still thinks Tata overpaid. His play on the deal is Ford preferred stock, rather than the common. That strategy seems to work across sectors other than autos, too, since Cramer said, “Almost all the bank preferreds are winners versus the common" stock.
Don’t miss Mad Money’s Back to School Tour show from Penn State University Wednesday night at 6 & 11PM ET. Cramer will interview U.S. Steel CEO John Surma.
Jim's charitable trust owns Goldman Sachs.
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