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A diversified global financial services holding company whose businesses provide a range of financial services to consumer and corporate customers.
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cmorgan08 (< 20) Submitted: 6/13/08 9:19 AM : Start Price: $19.85 C Score: 12.45
So, what's your point? Citi is not Bear Stearns. Citi is a diversified financial giant, not an under-capitalized investment bank. Citi makes money year-round on all of its financial service products. While it has written down nearly 30 Billion in assets, these assets are not worthless. Additionally, these write-downs are non-cash balance sheet charges, not cash outflows. The recapitalization due to the non-cash losses is a tiny fraction of the overall write downs. Citi is, was, and will be one of the largest players in international finance and banking. Once the fair value of these assets is determined, and the financial markets stabilize, I believe Citi will return to EPS in the $3.40 to $4.10 range. Remember, the $1.05 dollar first-quarter loss included a whopping 12 Billion in write-downs. Without those items, that Citi made $1.24/share. My point is, the core-business of Citi makes sense. These banks are not going anywhere. They made some mistakes, and lost some money, but no one can convince me that Citigroup is worth less than it was in 1998. Eventually the market will figure that out. If you pass on CIti at these prices, you are missing a once-in-a-lifetime opportunity to buy a great company at a great price. This stock will greatly outperform the market over the next 3-5 years.
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diverjdp (43.65) Submitted: 6/27/08 4:13 PM
Recs: 1 | Rec This
I had the same exact thoughts as you and I lost $$. I got out at $20 and am glad I did. I think it's too early to call a bottom on C. If you really love C you'll probably be able to buy it at $10-12 in a few months.
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jgseattle (41.88) Submitted: 7/07/08 12:08 AM
Recs: 3 | Rec This
The idea "to big to fail" does not mean to big to destroy all equity. C has a lot of assets but what are the liabilities? The recession is not even offically started and the banks are having troubles. Why would you invest now? I cannot see anything that will cause the stock to go up for at least the summer. I do not know the numbers but I wonder how much the equity C gained cost legacy equity holders. (stock issues dilute your ownership and make EPS comparisons harder to hit on year ago looks)I am looking for single digits.
patryan4511 (< 20) Submitted: 7/11/08 12:45 AM
Recs: 0 | Rec This
You hit the nail on the head, Citi will be back and this is a great time to buy or add to your holdings.
podrag (< 20) Submitted: 7/14/08 7:57 AM
LOL!
1justforfun (20.54) Submitted: 7/14/08 6:13 PM
Thank You!!! Thank You!!!! Thank You!!!! I have a hard time understanding why people don't see the forest through the tree's, The Company has over 2.2 Trillion in Assets, What you said makes perfect sense. Have a Great Citi day at $15.22 a share i would be picking up too.
dpid (< 20) Submitted: 7/15/08 12:01 AM
2.2 Trillion in Assets doesn't mean anything when it can't be properly valued and can't be sold to cover immediate cash needs. Citi won't fail, but it won't reward its shareholders anytime soon. Stay away. Let the blood gush out and dry from the banks before buying any of these cos in real life.
pinti (72.38) Submitted: 7/25/08 11:51 AM
SORRY IN REF TO DOWNWITHINFIDELS NOT ORIGINAL COMMENT PITCHER
devilTHEORY (98.13) Submitted: 7/31/08 2:08 PM
I think this would have been a better pitch if it weren't played so amelodically in my head.Anyone notice that this guy only has one pick, and has an unusual high amount of recs?Kind of reminds me of the guy posting on 1-900-Jackpot/Exmocare.
JoeD711 (< 20) Submitted: 7/31/08 5:04 PM
AND....Vikram will turn their share price around faster than most other banks, though I like STI, WB, and JPM better.
BOWLER800 (81.90) Submitted: 8/18/08 8:52 PM
Recs: 2 | Rec This
Nonsense. Since this post the fair value of the assets has been determined by the Merril Lynch sale at $0.22 on the dollar. That is destructive to Citi's ability to generate earnings going forward. Each dollar lost in equity is 10-15 dollars in lending Citi can NOT generate. To attempt to recapitalize, Citi has placed $500 BILLION of assets (at least that's the value on their books) for sale. Wait until you see what the assets eventually sell for. That will give you yet another indication of what's yet to come.Citi is a diversified financial giant & not undercapitalized? It won't be after the asset sales. But after selling off the assets (fund management, private equity, etc). Is it still a financial powerhouse? Citi is a underperform in my book. I don't see how what's left will generate anything close to $3.40-$4.10.
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