Cramer: Citigroup Is 'Red Hot'
Citigroup “has been red hot,” Cramer said during Tuesday’s Stop Trading!. He called the stock a buy, predicting a $6 share price within the next 18 months.
Cramer praised Citi for releasing an executive summary of the bank’s latest TARP report, saying it was a great way to fix a “terrible PR problem.” He said that many people see Citigroup as “public enemy number one” for its near collapse during the credit crisis, and the press releases help to change that.
In health care, Cramer said the action in insurers like WellPoint , UnitedHealth Group and Cigna signal that President Obama’s public-option plan is all but dead. If the White House was going to get its way, these stocks would be down significantly. The Mad Money host recommended WLP because it had the least exposure to Medicare Advantage, a drug program that could be affected by a new health-care bill.
Initial public offerings are on the rise, Cramer said. He credited listing fees as a big reason that NYSE Euronext shares are up.
Federal Realty Investment Trust is up more than $2 from its $57.50 secondary offering price, leading Cramer to call the group “coiled springs.” Given the offering’s success, he doubted that commercial real estate was in as much trouble as analysts have assumed.
“This is a tell,” Cramer said, “that the market’s more healthy that people realize.”
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