Citigroup, AIG and Circuit City. Three of the worst companies America has to offer, at least that’s how Jim Cramer sees it. Speaking on his regular Stop Trading! appearance Friday, Cramer could hardly contain his amazement at just how appalling these stocks have become.
Citigroup is “so bad” that even if it fired 200,000 employees it still wouldn’t be worth owning, he said.
But it's AIG that takes the cake. The world’s biggest insurer has become a “travesty,” according to Cramer. “I believe nothing it says.” The company took a net loss of $8 billion Thursday and said it needs to raise $12.5 billion in capital and could face more writedowns ahead.
Then on the flipside there’s JPMorgan Chase , which Cramer believes is one of the few financials worth owning here. And has anyone noticed that while all these other companies have been issuing stock, Goldman Sachs has been buying it back? It’s an issue of proficiency, as far as Cramer is concerned. Companies like JPMorgan and Goldman are simply better and what they do.
Cramer had nothing good to say about Circuit City , either. The electronics retailer announced it will open its books to Blockbuster , its potential acquirer, but Cramer thinks the acquisition is ill-advised. There’s “no there, there,” he said of CC. The company is on life support and he doesn’t understand why Blockbuster is interested in it. He said CC investors would be lucky to get out of the stock here at $5 and change.
Jim's charitable trust owns Goldman Sachs.
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