Michael Corvette, Corvette, Citigroup discussed on MAD MONEY W/ JIM CRAMER
Call me at one eight hundred seventy three or tweet me at you. Are we in a situation a situation where the only thing we have to fear is fear itself on a not so out there for the Dow dipping eighty six points. That'd be client point five percent. Nasdaq losing point nine four percent. So that stuff sell sell sell. I think he's number. They have sure the real story. Because ma'am, I listened at city groups terrific conference. Call this morning, the one that sent stocks soaring. Four percent. I sure got the sense that we have a lot less to fear than we think in fact, sitting maybe the perfect metaphor for this moment. We're so word state of the global economy that we're missing some great opportunities. Get a load of what CEO Michael corvette told us when his conference call. We clearly see a disconnect between what we see in our business. And what the markets are saying he goes on explained that he sees no significant slowdown. In fact, according to corporate we see the biggest risk in the global economy is one of talking ourselves into the next recession as opposed to the underlying fundamentals taking us there. Wow. Wow. That is some very polish commentary. So what exactly does it mean for you, and your portfolio, I we've been through very serious bear market. I know no one else is saying that except for me. But that's exactly what's happened. Even it was short-lived liberal and in a bear market investors, oblivious to any good news, while we Fred about even the slightest piece of negativity because it's hard to believe that stocks could plummet as hard as they did if everything in the real Connie's, okay cities, a classic example, this dominant international banks sorts stock plunged from seventy dollars before J Paul declared war on the US Konami. Down to forty eight dollars. Slows a couple of months later anytime you made your Bank tastes that kind of slack. You mean stock market say we that could be a real economic slowdown along with the spike in bad loans. Also. Read through cities actual numbers. The only meaningful negative was in the volume of trading reflecting at twenty one percent decline fees. You you're well that was enough to give the quarter the appearance of weakness. The truth is the trading has nothing to do with the real economy, which was robust for CitiGroup without any spike in bad loans whatsoever. And that's the fear of fear itself. Speaking on top of that, we're seeing you very different pattern developing here in the last few times, the banks reported we've gotten used to the Bank stocks kitty hammered. The results because they've repeatedly run up into the quarter. But not this time this time. The Bank socks reflect the fact that people are taking themselves talking themselves into recession people actually believe it. So we haven't had that kind of run up. Instead, we have a situation we're sitting company that made four point two billion dollars in the fourth quarter with the stock that traces substantial discount its Tej book fail actually, put back seventy four million shares of its own stock. Corvette intends to repurchase. Another eight percent of the company share this year. That's stronger gets pick sitting gophers actual momentum here. Thanks to an annuity stream called, and I quote treasury and trade solutions, it's a mouthful, but listen to this one its own. I think this probably could be worse seventy or eighty billion dollars half of city's current valuation work.