Citigroup, Cattles, Marsh discussed on MAD MONEY W/ JIM CRAMER

Automatic TRANSCRIPT

So I wouldn't have to justify the position here where at least that's what my say. But my headed very different response you own CitiGroup. The stock for the tangible book, what are we worth? If you close the business, everything and return, the posts to shareholders, this is the single most important metric for the Bank, stocks interest, Marsh, not that. No. And if you believe the city's tangible book, you as clean as I do if you believe there's truly mutt. That much cash on hand, then it would be nuts to sell the stock because eventually that aren't thing will work its way higher preps a lot higher. In other words, it's a watchable to sell the stock of CitiGroup emotionally, it's very tough tone. But nobody should rely on their motions to make money management decisions. Why no city the stock is ridiculously cheap trading in about three dollar discount to its tangible buffet again, that's. What it would be worth if they close the doors tomorrow? But here's the problem. Of course, they're not going to close the doors tomorrow. So we didn't marketplace's cities go to lose that money, or at the money isn't really there to begin with CitiGroup is pledged purchase about eight percent of its shares at these levels because the stock is so darned cheap. I can't where they're coming from. Although I think it's important that we give it a four percent stock would come down. But actually give it a much more advantageous to shareholders. I know that the longer city stock stays around here. The more catcalls we hear about CO, Michael corvettes leadership. But it's not as fall the Bank stocks all pretty awful on the line of Goldman Sachs is training is similar discount to its tangible book, but let's see personalized this for second. Forget city forget, golden key qual, okay, parent company. Keep Atkinson, Ohio doesn't hurt anybody. Here's a stock that cells from yearly the same price. Jeremy's multiplicity group has a higher you for point four two percent. And that unlike city kiss small enough to be taken over which is probably why. Doc trades at a four dollar premium to its tangible book value, and I think this would be an amazing franchise for someone to buy because the company has more than one thousand one hundred inches. Of course, of course, fifteen. You could argue that there's more, but it's the mainstays it's extremely proper, and it's growing at a preteen decent clip yet. No, major Bank has shown any willingness to choir Kikwit, and the big hedge funds are steering clear. Why will the prevailing wisdom is that you can't own the banks here because the yield curve is inverted short-term interest rates are higher than some long term interest rates and that hurts their building and make money. Plus, everyone says inverview curve assign that we're heading into recession which would be very bad for the businesses for both key and city. I think the recession fears people are totally overblown. But the simple fact is there's no real cattles. Thanks, unless the fed decides to cut interest rates several times, I don't see that happening. So what's the endgame here? There is not stagnation and stagnation unacceptable to most performed managers..

Coming up next