Citigroup Inc (C)

[Pres1ton]

I'm not sure what the point of a reverse spilt is. I doesn't add any value to the company or stock. It has been discussed and proven over and over again that the $5 rule for certain organizations buying into Citi is more of a guideline then a rule.

Treasury has said that by end of day Monday, my hope is it is after the close on Friday, they will announce BANK SPECIFIC options for buybacks and dividends that will reflect both the specific banks requests and Treasury's assessment of the latest stress test. My second hope is that when it comes to Citi that Treasury will approved up to a 30% buyback of stock and/or a 10% dividend. Anything positive will bump Citi next week but after a 50 cent drop I don't think we are going to see $4.85 even with good news - keep in mind it may not be good if the Obama folks are holding too tight on the leash.

Even if the Treasury ruling is positive it does not mean Pandit or the Board with act on it. My third hope is that they will but that will not be know, IMO, before the annual meeting in April.

So, to sum up, nice pop next week but only to may $4.75-$4.85 and than a trickle back to $4.60 until mid-April when the stock breaks $5 ($5.05) in anticipation of earning. Only IF Pandit annouces a big buy back (he is not ready to do a dividend) will Citi pop to the mid-5's and stay. Otherwise prepare yourself for more of the same througout 2011.