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Vet67to82 (< 20)

Citigroup and Tangible Book Value Per Share - TBVPS

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March 28, 2010 – Comments (16) | RELATED TICKERS: BAC , C , GS

In December 2009,  I wrote a blog about a "new" fundamental metric Tangible Book Value Per Share - TBVPS and Citigroup ... unfortunately, I can't find it in my MFool  blog history ...

This is what I wrote then;

  "Tangible Book Value Per Share - TBVPS
A company's tangible book value looks at what common shareholders can expect to receive if the firm goes bankrupt and all of its assets are liquidated at their book values. Intangible assets, such as goodwill, are removed from this calculation because they cannot be sold during liquidation. Companies with high tangible book value per share provide shareholders with more insurance in case of bankruptcy.

Lets look at Citigroup Inc C:NYSE

Cash per share (MRQ) 1.16

$3.86 +$0.0001 0.00% Vol. 272,707,947 Tangible Book Value per share (MRQ) 4.38
Price / tbv = $3.86 / $4.38 = 0.8813

UNDERVALUED - yep ... big time!

.... I will be adding MORE info to this blog on the tbvps of other companies
Tags : MRQ   BOOK VALUE   C   CHK   HES   ABX   KGC"

 Soooo, the government sale of Citigroup's stock ... will no doubt be to the market ... and NOT to Citigroup and I expect it'll be the shortsellers lining up to by C's shares to cover their short positions.   .   .      

  I'll look for C's updated TBVPS info and post it below.

16 Comments – Post Your Own

#1) On March 28, 2010 at 12:47 PM, Vet67to82 (< 20) wrote:

Accounting for  the "new" shares issued ( now 28.6 Billion Shares Outstanding ) after I blogged about Tangible Book Value Per Share - TBVPS ... this is C's new TBVPS calculation:

Rev per share (TTM) 6.48
BV per share (MRQ) 5.36
Tangible BV per share (MRQ) 3.93
Cash per share (MRQ) 0.89

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#2) On March 28, 2010 at 1:23 PM, Vet67to82 (< 20) wrote:

When I click on December blogs it says I have 5 ... and the 5 are there ... but when I do a search on " Vet67to82 " there my post  is ... dated December 10th, 2009. 

My fault ... I did it as a "pitch" not as a blog ... which is why (sheepish grin) it isn't listed in my blogs. 

Sorry ...   

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#3) On March 28, 2010 at 1:27 PM, ChrisGraley (29.67) wrote:

careful about C's valuation,

A lot of crap is listed on their books a caviar. 

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#4) On March 28, 2010 at 2:05 PM, Vet67to82 (< 20) wrote:

Thanks for your reply ChrisGraley. 

  Please note, I posted the updated info  in in my reply above (as I promised) ... and please note the difference between Book Value (BV) at $5.36 and TBVPS at $3.93, 

 That $1.43 difference addresses much of the " crap " concerns.   

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#5) On March 28, 2010 at 8:06 PM, Teacherman1 (57.23) wrote:

In the longer term, it will be worth much more. In the shorter term, it could go either way in a hurry. They may end up issuing more shares to raise capital, do a reverse split, even do some sort of spin off. We will get a better idea when the Govt. makes its first sale. Will likely be in several stages.

I owned Citi stock for a long time then sold it for a profit. Will get back in at some point, but will wait to see what plays out. Plenty of time before they start the "heady climb".

JMO and worth exactly what I am charging for it.

 

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#6) On March 28, 2010 at 8:44 PM, sentinelbrit (85.23) wrote:

I just read an interview with Bruce Berkowitz (he of "investor of the decade" according to M*) in Barrons. He owns C (I do too) and as he says, the company is generating a lot of cash, the balance sheet is healthier than it has been for years, it's a global brand and management is doing a better job than the previous lot (I know - they could hardly have done worse). The margin of safety is such that it makes for an attractive risk/reward play.

It's easy to throw stones at the banks, and as Berkowitz says, people hate the banks, but their lending standards have improved and the business they are now writing is good business.

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#7) On March 28, 2010 at 8:49 PM, SUPERMANSTOCKS (59.73) wrote:

I sold C because I got tired of waiting! The share price will drop back to about 3.75 a share and I might get back in then. But honestly, I am not that interested in them.

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#8) On March 28, 2010 at 9:00 PM, Vet67to82 (< 20) wrote:

Thanks for your replies Teacherman1, sentinelbrit, and supermanstocks. 

  A news article just hit the wires that Morgan Stanley Smith Barney (MS) won the underwriter rights ... and the shares will be a percentage of the average daily volume over the course of the rest of the YEAR  ... which should drive the shorts NUTS as they were expecting a TONNE of C shares to hit the market like a flood ... well, the US Treasury beat the shorts at their own game. 

 Check it out: "

Morgan Stanley Will Be Citi Stake Underwriter

 "

link:   http://www.cnbc.com/id/36067336 

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#9) On March 28, 2010 at 11:52 PM, SockMarket (40.21) wrote:

Just some quick modeling. Over the last 2 years (that's as far back as I can go) selecting for Co's with a market cap over 1B and under tangible book value did only slightly better than the market. You would have done way better just looking for companies that had grown earnings well over the past decade...

C worries me because of all the off balance sheet stuff. If I don't know what I'm buying there is no way I'm buying it. 

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#10) On March 29, 2010 at 12:20 PM, Vet67to82 (< 20) wrote:

Thanks for your response danielthebear.

  I think the global recovery stands to benefit Citigroup, over the other financial stocks,  more ... due to its global reach and millions of "global" customers.   

  My target for Citigroup, espcially if C hits the CEO's target of $20 BILLION is $12 per share by December 31, 2012. 

  Based on the fundamentals, even Mr. Bove has had to raise his outlook and price targets ... from wait to BUY and from $7 to $8.50 ...

  Check it out: 

" US Treasury to Sell Citi Common Shares in 2010 "

  link:   http://www.cnbc.com/id/36081059

  ... hope this helps . 

 

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#11) On March 29, 2010 at 12:34 PM, Vet67to82 (< 20) wrote:

Sorry, ... multitasking ... this is the article about Mr. Bove that I refered to in the reply above ...

" Bove Says Buy Citi Now, Raises Price Target "

 ... Link http://www.cnbc.com/id/36080198

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#12) On March 31, 2010 at 3:17 PM, Vet67to82 (< 20) wrote:

 "S&P RAISES RECOMMENDATION ON SHARES OF CITIGROUP TO BUY FROM HOLDMonday 03/29/2010 9:30 AM ET - Standard & Poor's Research Notes

The U.S. Treasury said it would exit its common share ownership stake in C over the course of 2010 through a prearranged trading plan. The Treasury owns 7.7 billion shares, and said the size and timing of sales would depend on a number of factors, but did not elaborate. With average daily trading volume of more than 500 million shares, we think the government could divest its stake without undue pressure on the share price. We are raising our target price by $1.50 to $6.00, on a higher premium to projected tangible book value to reflect our view of C's improved outlook. "

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#13) On April 01, 2010 at 12:03 PM, Vet67to82 (< 20) wrote:

" Shares of Citigroup's Primerica rise in IPO debut "
April 1, 2010 11:31 AM ET

http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=AP&date=20100401&id=11355506

  ...  still owns nearly half of Primerica. Citi plans to sell the rest of its stake after the IPO.

 The shares sold at $15 .... are now up to $19 ... so that puts a much bigger dollar (TBVPS) valuing on the other assets C owns that may fetch similar prices in  IPOs 

 

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#14) On April 05, 2010 at 1:17 AM, Vet67to82 (< 20) wrote:

Citigroup, Inc. (C)
$4.18 +0.13 +3.21%fyi  
After Hours: $4.19 +0.01/+0.24% Vol. 7.69 Mil

Sector: Financial
Industry: Money Center Banks

Closing price 3/31/2010....: $4.05

1 year target....:      $4.64

Potential Reward:  14.568%

Foward P/E ...:  12.94

PEgrowth (PEg)  ratio ...:  NA

Price/Book Value ....: 0.76

Dividends ...:  NA

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#15) On May 10, 2010 at 1:54 PM, Bad2dBone99 (< 20) wrote:

Previous +1 rec   :(    only once

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