Citi stock
Bullish or Bearish? I seem to be bullish. Citi closed at 3.53 today and I feel like in the short run there might be a downswing with their TARP repayment (which they have started) but i think in the future it will jump up a lot. I feel it is an attractive buy because it is so cheap right now and has tremendous growth potential. Look at B of A over the past year. CITI's NOI was neg this year, but it was a terrible year for banks in general and I believe that they have survived thus far and will come back strong. I also think with that financials are going to be one of the stronger sectors in 2010. What are your opinions...about both CITI and financials in general? .Bored and just want to start up some conversation
theoretically this is an insolvent institution, but as long as the government has a backstop on it, your thesis may ring true
Between the brain drain and the divesting of lots of their business units (Philbro, etc.)... it ain't what it used to be. You may as well spin the wheel with Fannie and Freddie if you're going to play with fire...
Citi is going to be dead money for a while.
I'm definitely bullish on Citi. With the government owning nearly 25% of the company, Obama and Bernanke won't allow the company to fail. Seems like the perfect investment (pretty much guaranteed not to go bankrupt.) I've been buying on dips since October with a 2-3 year horizon. It's had a good run up so far this week but I'm well aware that it may be a rough ride back up. If they wanted to give the stock a big boost and improve investor confidence, giving Pandit a pink slip would help.
What happens when the Treasury decides to sell its ~30% stake?
If you're bullish on financials, just buy some XLF or PFF.
Also check out John Paulson's financial holdings --> http://www.mffais.com/123783
Citi will be at 4.50 to 5.50 a share within 60 days. And will be $6 to $10.00 a share inside of 24 months (to account for the speculation that the market will falter once more before officially recovering). Citi's recent equity offering marked the low for this market environment and its only up from here. In addition, institutionally, Citi is hugely underbought. You look at the top 10 financial institutions and -- I don't remember the exact numbers -- but they are something like 40-60% held by institutional investors. Then you look at Citi and its literally like 20% institutionally held. As the economy recovers and Citi is no longer the bastard step-child of the Treasury, we'll see institutional investors re-up on their Citi holdings. When coupled with the fact that most of the financials experienced a big pop march their March '09 lows, investors seeking financials exposure with good upside potential will be looking to add Citi to their portfolio.
I was almost right on in the 4.50 to 5.50 range within 60 days... whats the prevailing thought on this recent run-up... I took gains on my Citi positions (stock and long range options) and am looking to re-up on my Citi position but I feel like there should be a slight pull back (hopefully back to $4, or ideally sub-$4 levels).
There will eventually be some negative news that comes out and calms all the bulls... query if the market will take it in stride or pull back a little. I'm hoping that will be the time to scoop up some more Citi for the long-haul (24 months) to make some real gains.
Any intelligent thoughts?
bullish, 3 months target at $5 to $7, 1 year target at $9 to $10, but expect a lot of volatility
For those of you looking to get in, C is down to around 3.50 (-4%) again today after a bounce.
I'm long and looking to get even longer, but...
the mkt cap at $3.50 is around 100MMM (according to BBG DES). if the stock doubled today to $7 and the mkt cap went to 200MMM, that would make C more valuable than JPM (177MMM), which doesn't really make intuitive sense to me. I'm aware that JPM is correlated to C to some degree and would also move up if C moved up, but I just don't think it would make sense to see C at or near JPM's mkt cap. Could be totally wrong though!
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