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Citigroup Inc. Message Board

  • maisai maisai May 18, 2009 9:25 AM Flag

    read Breaking News below" Cramer strong buy on Citi"

    Citi Will Be Next on the Upgrade Parade

    By Jim Cramer
    RealMoney Columnist
    5/18/2009 9:05 AM EDT
    Click here for more stories by Jim Cramer Try Jim Cramer's Action Alerts PLUS

    Is Citigroup (C - commentary - Trade Now) next to be upgraded? This morning Goldman Sachs raises Bank of America (BAC - commentary - Trade Now) to "buy." Given the need for more financing there and the prospect of "no bottom" in Merrill -- a judgment I do not share -- this upgrade could turn the tide against the bank bears who remain in force and evident by the day. Put simply, I believe that with the capital raisings coming to an end, the upgrade makes sense.

    So does the very exciting stock-and-bond deal at State Street (STT - commentary - Trade Now) that clears up the conduit situation that has plagued them. I think this stock should be bought aggressively, because this deal will mark a key bottom.

    Bringing us to the elephant in the room -- Citigroup. While everyone frets about it, the bank has quietly been selling off divisions and raising capital. This "supermarket" bank has more assets to sell than just any other, and judging by the high-profile way that Vikram Pandit has been comporting himself, I sense that the changes here are going well and that you will soon hear upgrades on the stock.

    This is a remarkable turn, one for the ages, and I think that the two loudest voices on the group, Meredith Whitney and Nouriel Roubini, will prove to have been problematic in their insistence that all is bad, whether it be residential mortgage, commercial mortgage or credit card.

    They remind me of Dick Bove, who had been everyone's hero during the 1989-1990 downturn but then stayed negative for the whole glorious upswing. Bove went, ultimately, from hero to goat and his reputation never really recovered.

    I have nothing but positives to say about Whitney's work until the middle of March, when she reiterated her strong sells. Roubini is an opportunist who makes me feel like I should go get a teaching job in finance if only to get the patina that puts him on some sort of hallowed ground.

    Watch Citi. It's next.

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