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Cramer Reacts to Whitney’s Goldman Call

Meredith Whitney’s estimates cut on Goldman Sachs may serve as something like a flu shot, Cramer said during Tuesday’s Stop Trading!.

Whitney dropped her fourth-quarter prediction for Goldman to $5.50 from $6, her second decrease in the past month. GS shares first dipped on the news only to move back into positive territory later in the day. And therein lies the key, Cramer said.

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“You have to be careful because if at the end of the day this stock is still up, then it’s been immunized,” the Mad Money host said, meaning Whitney’s bad news would be priced in and Goldman could withstand other near-term hiccups. “So that’s what we need to see.”

Elsewhere in the banking world, Cramer said Citigroup’s December secondary offering, which was priced at $3.15, “marks the low for this stock.” Citi shares were at about $3.50 during Tuesday’s trading session, and he expects them to continue to rise “over time.”

Google’s new smartphone, the Nexus One, is garnering plenty of media attention, but Cramer isn’t impressed – yet. Not with over 3 billion Apple iPhone applications downloaded since September.

“I am a big Google fan,” Cramer said, “but I am not going to get that excited about this.”

Lastly, while General Motors is the number-one American automaker overseas, Cramer said he’s “not worried” about Ford’s ability to catch up.

But “GM should be worried,” he said.

Cramer’s charitable trust owns Apple and Goldman Sachs.

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