Cramer on BloggingStocks: Financials get a window of opportunity

Posted Dec 18th 2007 9:05AM by Jim Cramer
Filed under: Citigroup Inc. (C), Goldman Sachs Group (GS), Morgan Stanley (MS), Bear Stearns Cos (BSC), Cramer on BloggingStocks

TheStreet.com's Jim Cramer says a few things are finally going right for this group.

We are in a rare moment. There are virtually no more analysts who matter who can downgrade the financials. That's it. No more blindsiding. With those sells out of the way, you have to ask yourself if there is much more bad news ahead.

Plus, Morgan Stanley (NYSE: MS) (Cramer's Take), Bear Stearns (NYSE: BSC) (Cramer's Take) and Goldman Sachs (NYSE: GS) (Cramer's Take), which I own for Action Alerts PLUS, are already pounded into oblivion.

Sure, the earnings can go lower, but the multiples are pretty low -- I know they can be up big if we are in "peak" mode. But I think that Goldman, in particular, is going to start winning a lot of business simply because it is doing better than others, and no one wants to be in something that could turn into a Refco, meaning an outfit you are custodied in that gets crushed.

The bears are sure that Citigroup (NYSE: C) (Cramer's Take) cuts its dividend. (As a holder of that stock for my charitable trust, I'm watching that one like a hawk.) What happens if Vikram Pandit turns around and starts selling all of the silly nonessential things that Chuck Prince bought? What happens if he is able to sell a huge amount of junk to bottom-fishers even if it is for cents on the dollar? What if he is creative?

Also, when is someone going to recognize that the dollar is bottoming and the foreigners are willing to take cheap stakes in our financials?

I think we could be in for a grace period where things work.

I don't want to get carried away, but we are now oversold, and the financials seem washed out ... for now.

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. At the time of publication, Cramer was long Citigroup and Goldman Sachs.