Cramer: Your Trades on Citi & AIG
Citigroup and American International Group were some of the big newsmakers of the day, with Citi expected to issue preferred shares after the close and AIG surging about 12%. Cramer during Tuesday’s Stop Trading! offered his calls on the stocks.
The Mad Money host said he expects a significant amount of demand for Citigroup’s offering if it happens. Also, investors are probably much more likely to buy the stock now that it seems CEO Vikram Pandit is there to stay, especially after his strong performance in front of Congress last week. Cramer put Citi’s breakout level $3.88 – just about a nickel from its present share price – and predicted the stock “takes out that level” and “goes back to the $4s.”
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As for AIG , Cramer thinks the company still has valuable assets to sell, even after two recent deals with British insurance firm Prudentialand MetLife, giving it the chance to raise still more capital. But the government, which owns most of AIG, should take this chance as the stock goes higher to take some profits on its holdings.
In tech, some people may seen Cisco Systems’ latest product release as just another router in a long line of them from the company, but Cramer called it a “legitimate piece of news.” He said it was important for Cisco to offer a router that the telcos would buy because they have been the networking-equipment maker’s “lifeblood.” But with the carriers ramping up their spending again, that should bode well for Cisco’s new device, which the company said was 12 times faster than competing products on the market.
Cramer said also likes F5 and Akamai Technologies in the networking space.
Lastly, Cramer said that McDonald’s strong sales in China could mean a reacceleration of those for Yum! Brands . The parent of company of Pizza Hut, KFC and Taco Bell has been a laggard in an otherwise “red-hot restaurant group.” But while he sees “no turn in Pizza Hut,” which has been dragging on Yum, increased business in the Chinese market could overshadow that “and make the stock go higher.”
But “I still like Chipotle more,” Cramer said.
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