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Cramer on Citigroup

Friday, 9 Oct 2009 | 3:35 PM ET

Citigroup will beat analyst expectations when it reports earnings next week, Cramer said during Friday’s Stop Trading!.

The company’s book value is just $5.65 a share, Cramer said, so an increase in profits would boost that figure and push up the share price “over time.”

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Citigroup continued its dance for Washington on Friday by selling Phibro, its commodities trading division, to Occidental Petroleum. The move was another attempt to appease the government, which took issue with $100 million in 2009 compensation paid to one of the unit’s traders.

“All these guys do is try to make the regulators happy,” Cramer said.

Stop Trading!
Mad Money host Jim Cramer gives his take on the markets.

“The government should be selling the stake,” Cramer continued, pointing to Washington’s 34% ownership of Citi. “They’re profitable.”

Cramer also criticized Liz Claiborne’s new exclusive deal with J.C. Penney, saying the agreement will stem losses but hurts growth over the long term.

“I would be a seller of Liz,” Cramer said.

Lastly, Cramer offered some advice to Khaldoon Khalifa Al Mubarak. The CEO and managing director of Mubadala, Abu Dhabi's major sovereign wealth fund, appeared on "Street Signs" today and discussed where his fund would invest its money. The Mad Money host recommended the fund create a holding company and buy up failing banks.

“I think it’s the best strategy on earth right now,” Cramer said.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

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