Where did you find that C announced that credit card chargeoffs were less in Dec than in November? Link? Doubt it was significant.
Fitch reports credit card write-offs industry-wide up in December after being down slightly in Oct/Nov.
http://www.earthtimes.org/articles/show/fitch-us-retail-credit-card,1120127.shtml
You're still looking at 12%+ writeoffs though. Citibank has huge spreads though having screwed nearly all of their customers with massive rate hikes in advance of the new credit card legislation taking effect.
I suppose their story might be: high write-offs continue, but higher spreads are covering them. Show me a happy Citibank cardholder though.. Short term, they've been acting out of desperation jacking up the majority of their good customers rates -- which would make me nervous about buying this stock at current valuations.
Long term, they are doing serious damage to their card business, which makes me nervous about buy & hold of C.
If it drops in into the $2.50-$2.70 range next week or two, I'd buy, but there is too much uncertainty in the economy & C's business -- so many better places to put your money to work.