Cramer Helps Boost Citigroup Once Again

Upbeat comments from the Federal Reserve yesterday helped lift stocks higher, with the Dow Jones Industrial average finishing up 120 points. The Fed said Wednesday that the economy appears to be “leveling out”. Stocks finished strong across the board with financial, telecom and industrial stocks leading the way. 

Two of the day’s big gainers, Citigroup and Clean Energy Fuels, received a nice boost from bullish comments by Mad Money host Jim Cramer on Tuesday nights show. 

Citigroup (C: 3.965 -1.37%) jumped 7.9% on Wednesday after Cramer said the stock is “red hot” and should reach $6. Cramer believes that investors who sell Citigroup stock right now are making a big mistake. The biggest issue that Cramer still has with Citigroup is the US government’s 34% stake in the company, but he believes the government will sell this stake on September 10. Once Uncle Sam is out of the company’s affairs, Cramer believes the stock will thrive. 

Clean Energy Fuels (CLNE: 20.42 -6.24%) was also lifted by the “Cramer Effect”, rising 7.8% in Wednesday’s trading session. Cramer has been a big proponent of natural gas and now thinks that Congress might finally begin subsidizing natural gas as a bridge fuel between crude oil and the cleaner energy alternatives. If that takes place, Cramer expects that Clean Energy Fuels will be one of the big beneficiaries. However, Cramer did warn investors that he considers it a speculative stock.