The financial reform bill has certainly caused some consternation among the financial stocks. Wall Street always hates uncertainty and the ambiguity of the 2,000 pages of the financial reform bill has caused plenty of it.

Yesterday, the Dow close down 268 points in what Jim Cramer described as a “horrible, stinking bad day” that was reminiscent of “Stalingrad or Verdun.” Well, maybe not quite that bad.

After looking at the carnage of the financial sector there is one stock that Cramer feels offers investors lots of upside.

Cramer describes Citigroup (C: 34.23 +3.51%) as a “pitiful giant”. The stock has suffered from a mishandled attempt by the Treasury to sell their stake in Citi. These strong selling pressures have pushed Citi’s stock price down and there’s more still to come.

However, on a technical basis it appears that Citi is oversold. The Street.com technical analyst Tim Collins believes that the current prices provide a good entry point. He predicts that the stock could rise to $4.60 – $5.00 in the short term.

Cramer is even more positive on the fundamentals. He has faith in CEO Vikram Pandit and likes the firm’s mix of domestic and international business. Most importantly, Cramer believes that Citi has little exposure to housing which is once again become a huge problem area.

Cramer set a $12 price target for Citigroup over the long term. He recommends that investors buy Citi at its current levels.

Citigroup (C: 34.23 +3.51%)
Jim Cramer appears to become Citigroup’s biggest fan since finally recommending the financial stock on August 6^th. Citi shares jumped 8.5% after Mr. Cramer anointed the company as the next big turnaround play similar to Chrysler in the 1980’s. Back in 1980, Chrysler was saved from going completely under by some timely government assistance. Investors who bought Chrysler shares ended up with phenomenal returns and Cramer thinks Citigroup is following the same story line and recommends buying the stock.

Wells Fargo (WFC: 30.63 +1.22%)
Another financial stock that got a boost from the Cramer effect was Wells Fargo. The bank stock gained 3.3% today after Cramer said he still likes the stock.

Brandywine Realty Trust (BDN: 11.38 +0.98%)
Brandywine Realty Trust gained 5.2% after Cramer interviewed CEO Jerry Sweeney on last night’s show. Mr. Sweeney argued that commercial real estate isn’t nearly as bad as the media headlines would indicate. He feels that commercial space will rebound along with the broader economy as companies look to expand once again. Mr. Cramer is bullish on the stock, because he feels it’s cheap and it has a 4% dividend yield.

Other Cramer stock picks:

Wellpoint (WLP: 64.83 -0.26%) rose 1.9% and Triple-S Management (GTS: 23.73 +6.65%) rose 1.0% – Cramer said that while we still don’t know much about President Obama’s healthcare plans, his reforms are not likely to impact either stock. Mr. Cramer expects both stocks to rise another 10-15%.
Walt Disney [[DIS] gained 1.6% – Cramer thinks the stock is a great play on a recovery in the advertising market and is puzzled why more investors are jumping in.
Family Dollar (FDO: 57.48 +0.70%) fell 0.5% – Cramer recommends selling the stock.

JC Penny’s (JCP: 42.35 +0.50%) jumped 9.7% after Cramer said he thinks the retailer will have a great back-to-school season. He also recommended Urban Outfitters (URBN: 27.14 +0.89%) which gained 6.8%. 

One financial stock that Cramer continues to recommend is Huntingdon Bancshares (HBAN: 6.05 +2.02%). The stock jumped 6.6% on Friday after Cramer said the stock is “dynamite” and he prefers it over KeyCorp (KEY: 8.17 +1.24%). Cramer recommends investors continue buying Huntingdon. 

Cramer all tried to reassure the market in the wake of the accounting scandal at Huron Consulting (HURN: 38.33 -0.80%). While Huron has seen its stock price fall nearly 70% in the last few days and probably has completely destroyed its reputation, Cramer sees opportunity in some of the other accounting firms that have fallen along with Huron. Cramer recommended Duff & Phelps (DUF: 14.87 -2.81%), but also likes FTI Consulting (FCN: 43.14 -1.12%). The stocks reacted positively to Cramer’s bullish recommendation gaining 2.7% and 2.9% respectively. 

Citigroup managed only a 1.3% gain on Friday despite Cramer spending a great deal of time on his show outlining the merits of investing in Citigroup. While Cramer believes that investing in Citigroup is like investing in America, he also laid out five reasons for investors to be buying Citi’s shares: 

1. It is very cheap. Cramer believes the book value is about $4 per share and thinks the stock should sell at 1.5x book value for a $6 price target.

2. The governments 34% stake. The government can sell its 34% stake in Citigroup on September 10. The government has already made $5 billion on its position, and could have a $20 billion windfall from the sale.

3. Geographic positioning. Citigroup is the dominant bank in 108 countries. In spite of its domestic woes, Citigroup is still the leader in emerging markets.

4. Good bank vs. bad bank. Citigroup is spinning off its toxic loans by dividing itself into two companies. This will leave the main bank with three profitable businesses; retail banking, global services and investment banking.

5. Solid management. Cramer likes the current management team at Citi and believes the government would be crazy to replace CEOs Vikram Pandit and Ned Kelly.