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Jim Cramer's Recommendation On CIT From Yesterday: "Primed For Upside. I Would Buy"
One can only hope that at some point irresponsible, speculative and highly destructive stock calls like this would see some regulatory intervention.
Citi and CIT Are Primed for Upside, by Jim Cramer, 9/29/2009, 1:54 PM EDT
Citigroup's on the move, so is CIT . I think that Citigroup will be
the
biggest beneficiary of the new plan to buy toxic assets, because it is
basically running its SIV as discontinued operations and it could
benefit from the new program. CIT is about the possible IndyMac link-up
courtesy of John Paulson, a real smart guy who was negative about
mortgages before it paid to be negative. Dan Freed on CIT CIT Surges on
Report
of IndyMac Deal
I put both of these up there as examples of companies that won't die,
and because they won't die, they live. I know that seems a little
circular in reasoning, but because Citigroup never suffered a run like
Wachovia and Washington Mutual did, it made it and as our flagship site
mentioned, it is safe. If it is safe, it can go higher.
Because no one forced CIT into bankruptcy, it can live to play again,
and when I read in the New York Post that Paulson owns CIT debt, I
realized that he's powerful enough to save this company, particularly
because he is one of the investors in IndyMac and knows his way around
the bottom of the debt barrel.
These two stocks represent lottery tickets that are no longer rip-ups
because they have made it out of the "critical care" stage and are
recovering.
I would buy them both.
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Someone needs to muzzle Cramer. He's doing more damage to Joe six pack that a room full of banksters.
Nah, keep him talking. It's comments like this that are nailing his coffin. Although at this point, pointing out that Cramer has no idea what he's talking about (to anyone without severe memory impairment) is like beating a horse with a dead stick.
A dead horse with a stick, surely.
Can we start a petition directed at the SEC/Congress to investigate and throw this S.O.B. in the clincker? Seriously. How is he not in jail yet?
Operation Enduring Bubble needs to come to an end!
It's clear that the vast majority of the money he made at his hedge fund was by (1) exploiting inside information--in particular, knowing analysts' actions on stocks before they happened, and (2) levering up twice at fortunate times (it worked out well for him but could have just has easily resulted in 100% losses).
He is a megalomaniacal criminal. It's too bad nobody has the proof to put him away.
What we do have proof of is that his advice is worthless, and that he builds up other people whose advice is worthless (or worse) like Lenny Dykstra and Ron Insana.
I have a hypothesis as to why he just sat there and took the punishment from Jon Stewart. He was afraid of what was coming next, that Stewart might actually have evidence of the skeletons in his closet that could ruin him.
CHE? Why not Stalin?
But the stick was probably dead before the horse......
He's paid by the banksters to entertain the not so well informed to keep them not so well informed.
Based on past performance, no guarantee of future results, Feds more likely to muzzle also-rans like Alan Stanford and Independents with Integrity than team players like Bernard Made-off, BB, HP, LS, RR, TG and Jim Cramer supporting broken Banks and Corps raiding consumers, savers, taxpayers and wage slaves.
JubileeProsperity.com
Thanks for caring, man. Fortunately I don't listen to Cramer, nor do I have any faith in any MSM.
www.JoeSixPack.me
It's true the End Is Near.
https://order.investorplace.com/?sid=PB3138&_requestid=6546
"this free e-letter is your access to a world most investors never get a glimpse of."
What secret world will Maria show us?
No, no, no! That's not what he said. He said that if you had money on deposit at CIT to leave it there because it was safe...
Classic! Only a matter of time until he's on TV explaining why he didn't say to buy CIT. Revisionist history is en vogue, baby, it's 2009!
These math questions are too hard... 27 times -37? I had to find my calculator...
Yeah, I got one like that, and then it said it would only accept 2-digit answers....
BSC-LMAO!! well played.
"...but because Citigroup never suffered a run like Wachovia and Washington Mutual did, it made it and as our flagship site mentioned, it is safe. If it is safe, it can go higher. Because no one forced CIT into bankruptcy, it can live to play again,..."
Along those same lines...
Sir Bedevere: There are ways of telling whether she is a witch.
Peasant 1: Are there? Oh well, tell us.
Sir Bedevere: Tell me. What do you do with witches?
Peasant 1: Burn them.
Sir Bedevere: And what do you burn, apart from witches?
Peasant 1: More witches.
Peasant 2: Wood.
Sir Bedevere: Good. Now, why do witches burn?
Peasant 3: ...because they're made of... wood?
Sir Bedevere: Good. So how do you tell whether she is made of wood?
Peasant 1: Build a bridge out of her.
Sir Bedevere: But can you not also build bridges out of stone?
Peasant 1: Oh yeah.
Sir Bedevere: Does wood sink in water?
Peasant 1: No, no, it floats!... It floats! Throw her into the pond!
Sir Bedevere: No, no. What else floats in water?
Peasant 1: Bread.
Peasant 2: Apples.
Peasant 3: Very small rocks.
Peasant 1: Cider.
Peasant 2: Gravy.
Peasant 3: Cherries.
Peasant 1: Mud.
Peasant 2: Churches.
Peasant 3: Lead! Lead!
King Arthur: A Duck.
Sir Bedevere: ...Exactly. So, logically...
Peasant 1: If she weighed the same as a duck... she's made of wood.
Sir Bedevere: And therefore...
Peasant 2: ...A witch!
Classic
Crowd: "We are all individuals!"
Man: "I'm not!"
And my favorite follow on line, after King Arthur pipes in.
" And who are you, sir, so wise in the ways of science"
"I am Cramer, King of the CNBS!"
Easychair prediction:
Rex JC off the air by the end of the year, preceded by
F Money and DK weed putting the top on AAPL...
Easychair prediction:
Rex JC off the air by the end of the year, preceded by
F Money and DK weed putting the top on AAPL...
In the bleak days of nineteen-eighty-three, as England languished in the doldrums of a ruinous monetarist policy, the good and loyal men of the Permanent Assurance Company-- a once-proud family firm, recently fallen in hard times-- strained under the yoke of their oppressive new corporate management.
Pushed beyond the bounds of decent and reasonable victimisation, the aged retainers take their destiny in their own hands and-- Mutiny!
And so, the Crimson Permanent Assurance was launched upon the high seas of international finance.
There it lay, the prize they sought, the richest jewel in the crown of the I.M.F.: a financial district swollen with multi-nationals, conglomerates, and fat, bloated merchant banks.
Hidden behind the faceless, towering canyons of glass, the world of high finance sat smug and self-satisfied as their future, in the shape of their past, slipped silently through the streets, returning to wreak a terrible revenge.
Adopting, adapting, and improving traditional business practises, the Permanent Assurance puts into motion an audacious and totally unsuspected takeover bid.
And so, heartened by their initial success, the desperate and reasonably violent men of the Permanent Assurance battled on... until, as the sun set slowly in the west, the outstanding return on their bold business venture became apparent: the once-proud financial giants lay in ruins, their assets stripped, their policies in tatters.
It's fun to charter an accountant
And sail the wide accountancy
To find, explore the funds offshore
And skirt the shoals of bankruptcy!
It can be manly in insurance
We'll up your premium semi-annually
It's all tax deductible.
We're fairly incorruptible
We're sailing on the wide accountancy!
up, up, up your premium
Excellent!
In Cramer's case, euthanasia is the only proper and humane action available.
cnbc always bringing the public the best and brightest financial market commentary(?)....fox and bloomberg should have a field day with this...
LOL down 43% ... that's what I call a helpful advice !
In any case I must confess I am surprised the trend for bankroput companies was UP lately.
What about the friends at GS upgrading NIKE after that earnings report ?
You wan't some salt with that wound, sir?
i think the damage to J6P is intentional. No one is policing these guys at CNBC.......he's helping his hedge fund buddies loot....its that simple.
Moin from Germany,
this rivals almost his housing shortgage call from Jan 2008.... :-)
http://www.youtube.com/watch?v=LSEZVgUHDX8
Or his "So what if subprime blows up?" call.
http://www.youtube.com/watch?v=BVl9SQ-KVmE&feature=fvw
Interesting to see if CIT goes hat-in-hand to Geithner to get a bailout, and wins. If so, the taxpayer will have graduated from bailing out centi-millionaires at Goldman Sachs to bailing out billionaires in the form of John Paulson. We are just TOO kind!
he meant buy it AFTER the 40% drop in price today!
(Cramer is a moron)
+1
he'll say that he meant buy the preferred shares rather than common, assuming they even have preferred shares. another excuse he'll cite is that he always recommends to average in. more comedy on the station that no one watches.
More stellar journalism from the NBC family of news producers. With standards of journalistic integrity like that no wonder they and their associates at CBS, FOX, ABC, CNN and E TV are aghast at the quality of reporting found at Internet blog sites.
Please Zero Hedge... stop reporting about this insane, Bi-Polar, drug induced, moron/idiot. The more you mention him, the more significance you give both him and CNBC. Sure, it gets people's emotions running high, but my goodness, the guy is a lunatic. ZH has more important topics and issues to report on. After all, with CNBC viewership down 37% YOY, this insane, idiotic, small minded man, can't have more than 3,000 people listening to him at any one time. Let's move on.
I second that thought.....
Agreed.
third
I think he should just be forced to buy with his own money anything that he recommends to others.
Cramer=MSM mouth piece=crap
He's maybe still on the Goldman payroll.
I think there is a higher probability of Tyler, appearing as a guest on Lunch Money, than there is of any regulatory intervention regarding Cramers market calls.
Now look. Cramer told me to buy this shit so I did. Okay? If I had a brain would I be reading "Get Rich, Stay Rich (Make Your Kids Even Richer)"?
no one on the RealMoney site will confront him. Apparently none of them really give a shit about the reputation of the site...or maybe its that whole "birds of a feather" idea. Spineless fucks
Off topic but was PMI released a little early today. I only ask because of the spike in futures volume at 9:42.
Cramer has publically boasted about breaking securities laws, I wonder just who and what he is connected to to be so brazen and untouchable?
Cramer Confesses
hahaha - pisani more or less admits the chicago PMI leaked b/f the offical release - no shit!
clearly tylers post must of hit home because now cnbc pumping cramers previous picks.
Glad it wasn't just me that saw the almost 40k e-minis go off 3 minutes before "major economic news."
Dare I say this...ZH's trade ideas seem to have had as poor if not poorer performance compared to Cramer's. Leave out the ad hominem attacks- however deserved- and stick to facts pls. Isn't that what you profess to do?
please point out one Zero Hedge trade idea/recommendation.
Waiiitaminute..... am I the only one sending you 1.5% of my assets? I still haven't received my latest account statement btw. ;)
I love the double logic of idiots like that. This site's genus (from what I have gathered) is from the fact that the markets are detaching from reality and in essence are a ponzi/bubble due to: no real M2M, fake IOI's, fake liquidity due to excessive rebate trading, computers ramping up prices against each other, etc., etc. If the markets weren't "rallying" oblivious to reality, this site would either not exist or would at least have quite a different tone and color.
That the market continues to bubble just furthers the claim that it is bubbling. Maybe it will bubble until the end of the sun's life. Doesn't make you or anyone wrong, unless you state a date for a correction and advise trading based on it.
From January 2009:
Zerohedge has invested its collective $0.69 (this by the way is also our disclaimer that we are unabashedly pushing our book) in the SRS ETF. SRS is an ultra short fund, double inverse tracker of the Dow Jones U.S. Real Estate Index. We would post the links that disclose the current state of the U.S. residential and commercial mortgage markets but frankly unless you have been living in 740 Park for the past 2 years, you should have an idea by now.
Technicals are sweet, with this baby hitting $260 the last time Citi was at this price so there is some nice post short squeeze upside... Top 10 Index constituents of the 79-company fund, are such future DIP hunters as Simon Property Group (7.76%), Vornado Realty (4.69%), Public Storage (4.56%), Equity Residential (4.31%), Boston Properties (3.99%), ProLogis (3.87%), HCP (3.59%), Plum Creek (3.08%), Kimco Realty (2.90%) and Avalonbay (2.71%). The P/E ratio as given by proshares is 15.89x, and a 5.28% dividend yield... We would probably recommend selling once it hits the low to mid 200s for a nice 3x return. Start buying.
Dare DRV above 16.23?
Here is article posted on ZH that explicitly has a "buy" recommendation on UNG.
http://www.zerohedge.com/article/sell-nat-gas-producers-and-buy-ung
If I were you, I would take it down out of an abundance of caution. You better watch your step...
If you think this piece is a recommendation you are a fool.
I think it just points out the absurdity of Cramer/CNBC/MSM and the piss poor logic used to validate bad advice.
I'm pretty sure you mentioned that you were long Citi common for its short squeeze potential. About a week or two later, every arb in the land (including me) was getting their ass kicked. That was a really damn good call.
That one time you said to go long on GGWPQ. Remember?
No, wait... that was ME, when it was trading around .50. Right here on the comments section. I wonder if anyone listened to me. I'm STILL holding about 50K shares of that POS.
(I only WISH you'd once and awhile give recommendations. If for no other reason than it'd be funny. Maybe you could start a Premium Subscription Site; like a ZH Platinum Member-type deal. Annual fees. Complimentary hats. The works.)
Examples of when ZH told you to buy or sell please.
From January 15, 2009 - Look at the Last Line "start buying..."
Zerohedge has invested its collective $0.69 (this by the way is also our disclaimer that we are unabashedly pushing our book) in the SRS ETF. SRS is an ultra short fund, double inverse tracker of the Dow Jones U.S. Real Estate Index. We would post the links that disclose the current state of the U.S. residential and commercial mortgage markets but frankly unless you have been living in 740 Park for the past 2 years, you should have an idea by now.
Technicals are sweet, with this baby hitting $260 the last time Citi was at this price so there is some nice post short squeeze upside... Top 10 Index constituents of the 79-company fund, are such future DIP hunters as Simon Property Group (7.76%), Vornado Realty (4.69%), Public Storage (4.56%), Equity Residential (4.31%), Boston Properties (3.99%), ProLogis (3.87%), HCP (3.59%), Plum Creek (3.08%), Kimco Realty (2.90%) and Avalonbay (2.71%). The P/E ratio as given by proshares is 15.89x, and a 5.28% dividend yield... We would probably recommend selling once it hits the low to mid 200s for a nice 3x return. Start buying.
Next time the clerk asks you, tell them plastic instead of paper..
Perhaps I should apologize to E TV
#83630 = Tool
Or CNBC employee (vanishing breed)
Cramer is doing a great job, and being paid well, as an entertainer. Anyone unfortunate enough to mistake him as thier personal financial advisor has probably lost money betting on WWE smackdown.
No one and I mean no one should trust what Cramer says. Also, I have been watching CNBC since August 2007. In so doing, I am absoluetly amazed at how individuals like Larry Kudlow can be so consistently wrong and stay on the air.
Here's an Action Alerts Plus recommendation: this bear market will not end until carnival hucksters like Cramer are fully discredited and lose their TV shows. This nut-job obviously didnt get enough attention from his mommy when he was a kid and represents all that it broken about "the system".
There is no way anyone can reconcile the need for high risk/rewards with consistent profitability.
The show is called Mad Money. People are looking for lottery tickets; he is throwing them momentum trades with high betas.
The gambling mentality of people is the problem, Cramer is only a symptom.
Bring back Dennis Kneale, please... Just get rid of Cramer.
DavidC
Look at everyone pile back into CIT here. Cramer must be on pumping it again
And here I thought Kneale was the sword swallower. Nope, Cramer apparently is not "in the know", and has made a tremendous mistake at other people's expense.
The problem isn't so much Cramer as his audience, most of whom should be following Suze Orman's advice instead.
Actually, if you took his advice in early to mid March your portfolio would have doubled at least.
which of course is assuming you didnt take any of his advice from the 3 yrs before.
wrong. cramer told everyone to SELL at the bottom.
Exactly. He said to sell BAC at 5.60ish, among other things.
He was bearish on WFC at 12. We all know how those predictions turned out...
You could buy dog poop and it's doubled since then. Doesn't mean anything. Where's the delta? How about taking his advice in 2006-2007? Or summer of 2008. Don't be dumb. He said CIT is all rosy and peachy and that night they announced the exact opposite. Clearly his recommendation was based simply on price action of the common stock. A stock that we know is heavily traded by unthinking machines. It was based on zero analysis of cash flows or asset quality. I suspect you are being tongue-in-cheek but this manipulative shyster should not get even joking support.
Bear Stearns is fine.
CIT = Cramer Is Trash
Cramsters probably just rallying the herd so his hedge fund buddies can sell to them.
He does this all the time, if there is an extreme drop in CIT and C over the next couple weeks you'll know this was one of those times
Yoink!
Whoops I did not see todays price when I wrote that
Ok this was one of those times
They dont call him Crammer for nothing.
I'm amazed no one has shot him in the last five years.
Where's the NY Mag expose on Cramer?
i don't think you can have regulatory intervention on behalf of stupidity - it's allowed.
besides, if you liked CIT @ $2.10, you LOVE it at $1.50. it's called VALUE investing. /sarcasm
11:06 CIT down .75 (34%). Talk about a Cramer bump!
"cnbc always bringing the public the best and brightest financial market commentary(?)....fox and bloomberg should have a field day with this..."
Agree, but they won't. Unfortunately they just don't have the balls. Simply.
Why not his reccomendation is based on insider knowledge of the company going bankrupt,and it came to facilitate a distribution to retai guys by GS and other hedgies who are friends with him?why "some"people here in this highly inteligent gathering, still give that person the benefits of the doubt?did anybody notice how price and volume shot up yesterday out of all days?exactly the day that the WSJ article appeared AH?
Exactly
He pitches for the hedge fund guys
He screams sell when they want to buy and buy when they want to sell.
Many of these are not "bad calls" as some people seem to think
Nobody makes "bad calls" with the uncanny timeliness of The Cramster, IT COULD NOT BE DONE.
Cramers show is for entertainment purposes only. He has a disclaimer. CNBC is well aware of his awful advise, but he is an entertainer.
He is on television to pump the market, as most people on television are. They work in an industry that is reliant on a confidence game. When people lose confidence the game is over. Have to find new suckers. Harder to find new suckers than it is to work with the older ones.
Watch Cramer's lips: He said that he would buy.
Questions to ask:
1. When?
2. Yes you would, but are you buying?
3. Who would you buy CIT for? Short covering?
CIT is even worse than last week's "Mobile Internet Tsunami", RIMM.
It takes serious skill to pick two 25%+ losers two weeks in a row. There are no longer enough Cramericans left for his hedge fund counterparts to unload their garbage upon.
He didn't recommend RIMM. He recommending buying other participants in the "Mobile Internet Tsunami" (e.g. Apple, some chip and semiconductor makers) on price weakness if RIMM disappointed and caused other stocks to fall.
Well he did tell us to buy a T shirt. Does that count?
Home gamers only down 35%
dont worry, the Fed will save it.
Mad Money indeed.
I demand that CIT change it's initials or company name or something so I can stop confusing it with Citi. I don't care either way, but my will be done, damn it.
I am Chumbawamba.
why is he still on TV?
Sorry guys. Those who say "Cramer's just selling for his Wall Street buddies" - Cramer's not that well-connected and hasn't been for years.
And Cramer doesn't HAVE Wall Street friends, just people who use him for TV time.
Oh, when Cramer had his call months ago (you know the one, where he said it was safe to keep your money there) - well, that same day, on The Street.com's website - video - he had recommended BUYING them through options.
And he had given the same advice earlier in the week.
You are quite clearly a CNBS/Cramer SHILL... we don't believe your lies.
Cramer, Action Alerts portfolio, 2002-2008: -13%.
yet he advertises non-stop about how much he is up this year.
the media exemption for investment adviser registration needs to go. If you are charging people $500+ a year, you shouldn't be able to mislead them into signing up. That isn't media. That's scamming people. ZH is media.
but beyond that, fraud is fraud, and false and misleading stuff is false and misleading stuff; IA registration or not. the SEC needs to fucking do something about Cramer, Insana, Pro17, ZyGo5, Gorilla Trades, and all the other bullshit stuff out there.
and can someone explain to me why past performance isn't necessarily indicative of future results unless the past performance is U.S. stocks and the firm nearly guaranteeing you that history will repeat itself is Edward Jones or Vanguard?
I wonder if Cramers post Cit buy order market climate will play out like when he issued the buy order on Baer?
I think Cramer should stay away from financials and stick to industries with catalysts far enough out that no one remembers his recommendation/rationale by the time they occur.
How many times does the market have to immediately (< 2 days) make a fool of the guy until he learns his lesson.
I love this blog and I love the commentary. But Cramer has a right to recommend whatever he thinks is a good stock for whatever reason.
And TD, we should have a big mea culpa for the buy recommendation when SRS was at $70. I know, I made the same mistake. Your rationale was dead on, it just didn't work out.
We are all adults here, no bitching and moaning you don't understand the risks. If you don't, then you are too stupid to invest in stocks/etfs, levered and unlevered in the first place.
TD, please respond to those commenters who have already called out this one specific example and acknowledge it. There was nothing wrong with the call, just didn't work out.
In my opinion anyone stupid enough to not see the irony of him saying he was "buying" $0.70 worth of a $70 stock and followed thru with that "advice" Should have lost money.
Is this the same CIT that's off -37.27% today?
No need to answer LOL
This guy is soooo destructive; the whole network is with programs called 'fast money', 'mad money' they are touting the u.s. capital markets as a casino where you can win, win, win if you bet "with" them. this should be illegal but cramer calls his stock recommendations..and that's what they are..."free speech". he also owns a clip joint in jupiter florida known as weiss ratings...same game..we can make you 2000%...not a single trader works there but they recommend, even urge people to trade on their advice. if the sec wants to do something useful it might consider muzzling these hucksters.
1. very much agreed; subscription services being unregulated undermines the average investor.
2. the capital markets are a casino. I think most successful managers (e.g. Peter Lynch) would agree, except perhaps for Global Macro guys, for whom capital markets are more like a racetrack where they have inside info from the trainers.
Cramer might have shorted CIT at 1:53pm yesterday.
I'm hearing more of his radio ads these days....funny.
So CIT ramps-up big on volume after the Cramer buy recommendation at 2 pm yesterday. So the question I have is, which of his hedge fund buddies were shorting CIT on that ramp-up?
I think Cramer is great, he's saving me time in the future...
A few years from now when my grandkids ask me, "hey pops, were people REALLY so stupid back in your day?", I'll just smile and pull up a vid of Cramer on YouTube. So easy.
Thanks Cramer.
The US mkts are being treated like a casino? I am shocked, amazed, dumbfounded. How could those naves at CNBC be so churlish.
Didn't Cramer have Dick Fuld on air touting Lehman literally days before they went bk?
It's time for Jon Stewart to call this crook back on the carpet. If even one imbecile in a mental institution is still watching CNBC, their ratings are too high.
Is there any chance of CNBC turning the Porno, Prostitute and Marijuana specials into a nightly show to replace Mad Money?
I have placed the Cramer confession on my facebook and have asked for every friend to spread it around. I also asked for some of my friends to contact every law enforcement and politician they know. Which is a supprisingly large number. I would urge the rest of you to do the same. Cramer is a pathetic trader. Not even a real human. He probably never heard G Gordon Liddy's advice on prison. Hit the first gaurd you see. Then you will be placed in solitary confinement. You might spend and extra year. At the end at least you asshole will be this big ".", rather than this big ". Cramer will flip. He is former GS. Think about it.
Well they did not display that correctly, the secondary was "O", please keep that in mind.
Did he mention anything about it tonight on his show? Did he apologize on air? Does ANYONE here watch that garbage?
by watch do you mean tune out his carping & foaming rabidness while drinking beer ? then yes
@Mickey - Are you really that stupid? I just got through saying Cramer's not powerful, unliked, given the examples where he really DID say to sell Bear, and you say I'm a shill?
Geez.
You really need some brain tablets, because yours is long gone.
-
Clucking bell! get the cramer confession out! it will be the start of the end that does not involve me shooting you traders(traitors).
I hope you get this tyler my father was both a math and physics major at ubc
Fuck you for giving me a test they will not let me give the correct answer to a negative equation.
Perhaps it is time for the markets to wake up....
www.youtube.com/watch?v=KUsj7EdZigM
Cramer does a huge disservice to investors with his rapid-fire ranting.
However, for those who are calling for regulatory action against him, what he's doing is probably not illegal. For better or worse, it's hard for regulators to go after people who make generalized I-have-an-opinion statements (i.e., not advice directed to an individual client) because the law essentially protects those statements as free speech. But if someone could show that Cramer was trading against his recommendations, that would be a different story.