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Should You Be a Buyer of Citi Shares?



March 29, 2010 – Comments (3) | RELATED TICKERS: BAC , C , JPM

My thoughts on this question, as the government prepares to divest its stake.

Alex Dumortier, CFA

3 Comments – Post Your Own

#1) On March 29, 2010 at 8:42 PM, Vet67to82 (< 20) wrote:

Should you buy C now?  

Short answer = YES! 

 But, it's YOUR money and your decision to make ... do NOT let me .... or anyone else, tell you what to buy ... or when ...  

 (1) " Bove Says Buy Citi Now, Raises Price Target "

 ... Link

 (2) " Morgan Stanley Will Be Citi Stake Underwriter  "

  ... link: 

(3) " Citigroup and Tangible Book Value Per Share - TBVPS "

  ...  link:

(4) " Citigroup (C) on the move higher " 

  ...  link:

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#2) On March 30, 2010 at 11:12 PM, sentinelbrit (56.48) wrote:

Citi is a buy. It's risky but that's why there is the potential reward. I think it can get to $6.00. As other fund managers have noted - the balance sheet is getting better, the bank has a global franchise, my feeling is that the market is underestimating the earnings on banks - they are borrowing at next to nothing (from the Fed), paying virtually nothing on deposits but lending at reasonable rates. A better than expected economic recovery would alos boost earnings. I'm hopeful all the reserves for bad loans  have been taken.

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#3) On March 31, 2010 at 3:19 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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