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$15.15 -2.26 (-12.98%)
10/7/2008 4:02 PM

Citigroup, Inc. (C)

CAPS Rating:
**

A diversified global financial services holding company whose businesses provide a range of financial services to consumer and corporate customers.

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Avatar britpick (91.14) Submitted: 11/02/07 2:24 PM : Outperform Start Price: $35.57 C Score: -23.93

I see two things going for this stock (2 Nov 2007).
First & foremost, the price is as cheap as it has been in a long time, which makes the dividend payout on an investment made today very healthy - and I love dividends.
Secondly, received wisdom seems to be that the current CEO is on his way out. Citi is a banking conglomerate, based on the premise that the whole is greater than the sum of the parts. If this is the case the new CEO will recognise this and take the necessary steps to get this thing back on track. If the parts are greater than the whole then I can see (and this is already happening to some extent) a well thought through break up of the group to yield execellent returns to the shareholders. (wouldn't it be nice if they did this even half as well as Altria are dismantling their former empire!)
Citi may splutter for a while but is nicely poised to deliver some first rate returns over the coming years.

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Avatar gklein711 (44.04) Submitted: 1/06/08 10:28 AM

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If that was all, I would agree. But C is extremely likely to cut their dividend in the near future, which will make is much less attractive. Their dividend cut will likely in turn cause other financials to cut their dividends. I an frightened of a blood bath before this financial mess is straightened out, and C is the lynchpin of the bear market ahead...

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Avatar AresFinancial (99.67) Submitted: 4/27/08 4:38 PM

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The P/E is 32. How is that cheap? The credit crunch and uneployment has just begun, where are the "first rate returns" coming from? Also how long will C be able to afford to pay that dividend?

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