Citigroup Inc (C)

[Buell]

My thoughts (180 to other posts)

I see the upper gaps filling and like I said before consolidate and float to mid high 5's until next Q or more guidance.

I don't agree with the sell before the gov releases a plan to sell, I beleive the plan to sell will only move the stock higher. Lets face it you can read anywhere on the web investment houses do not like the stock due to the gov's ownership. So once the plan is laid down the gov is out and investment agencies might take a shine once more to C stock. C in the past was one of the most widely institutional held stocks. That's not the case today.

Other well know fact city has been losing money for better part of two years. Now for the first time in two years it's moving back to profit (monumental)


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Steve Grasso recommends long Citigroup [C 4.55 0.08 (+1.79%) ]. “I think the whole sector is moving higher.”

Ref:
http://www.cnbc.com/id/36320424?__source=yahoo|headline|quote|text|&par=yahoo

keep this in mind too (this is great news):
There are encouraging signs that Citi will find it easier to dispose of its noncore assets than the market once thought. The public offering on Mar. 31 of 21.4 million shares of its Primerica (PRI) insurance marketing subsidiary at $15 per share raised $320.4 million, 35.6% more than the $236 million Citi had expected to raise by selling 18 million shares of Primerica at $12 to $14 a share. Even more surprising, Primerica's stock briefly traded above 20 a day later, closing at 19.65 on Apr. 1.

Ref:
http://www.businessweek.com/investor/content/apr2010/pi2010045_518071.htm?campaign_id=yhoo

Current valuation:
Price to Book Value (P/BV) 0.18 1.23 -85.73%

If company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.

Otherwise, if company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.

It's currently undervalued by 85% benchmark
ref:
http://www.stock-analysis-on.net/NYSE/Secondary/Citigroup-Inc/Valuation/Price-Multiples

However for every good side there is always a bad side. This is the only thing that could hurt us right now

Major Banks Said to Cover Up Debt Levels
http://dealbook.blogs.nytimes.com/2010/04/09/major-banks-said-to-cover-debt-levels/?partner=yahoofinance

Report: Banks Understated Debt Levels
http://www.forbes.com/2010/04/09/report-banks-understated-debt-levels-marketnewsvideo.html?partner=yahootix

sorry didn't have time to markup chart, have to catch a plane! have a great weekend.

One more thing, I could not find the articles but two analyst I follow that have C stack at $6 factoring in the sale of the gov!



B