C Citigroup Inc.

[Darth Trader]

(NYSE:C) Stock – Is It A Strong Buy?
Tuesday, March 9, 2010
By admin
Citigroup Inc (NYSE:C) is a controversial stock pick these days because the bank is facing so many issues, but that doesn’t mean it doesn’t have its share of supporters. One such fan is Fairholme fund manager Bruce Berkowitz. He’s put his money where his mouth is, so to speak, by investing $700 million of his client’s cash into Citi.

Berkowitz said that investors might be making a mistake by focusing too much on Citigroup’s problems, and not focusing on the strong assets the company still owns. In a conversation with Forbes, he said that even the worst assets on C’s books are earning a 5% return.

Not only that, but Citigroup has shored up its financials. The company has increased cash reserves and it’s Tier 1 capital ratio now stands at 11.7%. Of course Berkowitz is not the only major investor to pump dollars into C stock recently. He joins George Soros and John Paulson in making huge, multi-million dollar bets on Citigroup having a resurgence not only operationally, but from a net earnings and stock standpoint too.

Much of what happens next for Citigroup stock will depend on what happens after March 16, 2010, when the lockup ends and the Treasury can begin selling its 27% stake in C to the investing community. Once the government is gone completely from the company, some investors who have remained on the sideline might be tempted to get in. Of course much will depend on whether the company continues to execute its turnaround. Right now, the major investors putting up the big bucks seem content that C is well on its way to divesting itself of over $572 billion in what it deemed ‘bad assets’ and is likely to earn significant amounts of earnings from its traditional, core operations.

Dow Jones Columnist Tomi Kilgore thinks that the real move for Citigroup will occur after March 16 as the technicals for the company really firm up. It’s hard to argue with that logic. Right now the company has a huge, unwilling partner in the government who owns a huge chunk of stock. After they get out, the company’s shareholders will have much more clarity of purpose. Plus, the company should earn some fans back on ‘Main Street’ because they paid back the money they borrowed from taxpayers at a profit.

Right now shares are at $3.57 a share. The stock has been in a trading range for months now. This could end quickly after March 16 and that will likely be a good thing for investors who are in shares prior to that date. For those lucky investors who have been holding for a year or more, this could very well be the move you’ve been waiting for.

Of course the real money for Citigroup would come down the road, when a full blown economic recovery is under way and C has once again became a world leader in finance. The company won’t look exactly like it did during the ‘old days,’ but if Citigroup can hang onto some of its scale and reach and increase profitability, then the company will be one that’s held in almost everyone’s portfolio.

The fact C is currently in so many rich people’s portfolio should bode well for the average investor who’s thinking of taking the plunge. If you remain cautious, wait to see what confirmed move happens from March 16 on. If it goes as expected, C stock might be going to a whole new level.

[CITY]

Ultimo momento japon compra citibank .




alegria es broma , una subidita viene bien no ?

[CITY]

Vamos nena movete este balance viene por accion 0 operdida el que viene vendra mejor y mas si sacan los activos toxicos , despues no habra negocios y agarran a las retrazadas .
es mas futurologia que el presente en si , pero muestra mejorias EEUU como el banco .
Es mas seguro el CITY que fnm o fre , aunque se ganaria mas dinero si estas mejorarian .
Me perdi el negocio de las LEHMAN PQ que macana

[SINAC]

Pregunto esta suba no les parece mas por las opciones q por merito propio? digo para no generar falsas expectativas.

[NACHO3]

Se despertó un poco.RSI 65, SLOW STO 92 MACD +. Va por resistencia de 3,70. Por ahora tranqui con el volumen.

[CHIQUI1]

Aca va directo:
http://money.cnn.com/2010/03/09/news/co ... /index.htm

[Darth Trader]

Citigroup Shares, No longer toxit?

http://money.cnn.com/2010/03/09/news/co ... /index.htm

[ALEJITO-CAPO]

VALENTINA PLATA EN MANO CULO EN TIERRA . ganaste siempre hay algo para comprar barato si no es esta es otra.mas de un 10 en dos meses no es malo lo que pasa que todos ganan arriba del 100 y no pierden nunca son todos ricos menos yo . saludos y te felicito

Yo te felicito a vos Miguel Angel por la sinceridad, aca todos son unos fenomenos por lo que se lee o casi todos, no hay que generalizar. Por lo visto encontre a uno que alterna buenas y malas al igual que yo; como veras ya somos dos los "humanos" asi que no te sientas tan solo, saludos y muchos exitos.
Pd: en esta estoy afuera hace rato pero le tengo unas ganas, bye bye.

[miguel angel]

VALENTINA PLATA EN MANO CULO EN TIERRA . ganaste siempre hay algo para comprar barato si no es esta es otra.mas de un 10 en dos meses no es malo lo que pasa que todos ganan arriba del 100 y no pierden nunca son todos ricos menos yo . saludos y te felicito

[martin]

Hasta 3.7, va como trompada....

Un zig zag perfecto se ve en daily y hoy un volumen de las pelotas... esto no creo que pare por aca...

Hay que seguirla con atencion...

Tomarías ganancias en ese cifra?.....

saludos