1. Book value $62; selling at discount from tangible book value.
2. FPE is half of S&P500 FPE, making it very undervalued.
3. Global economy is on the mend; good for C's int'l franchise.
4. Merill-Lynch is doing very well.
5. Housing demand/prices jump is very good for C's legacy issues.
6. Loan demand is on the rise with continuing job gains and economic growth.
7. Capital ratios best in the industry.
If CEO moves on cost structure aggressively, C would be unstoppable. A 50% gain from current levels within one year is very likely.
Citi is in pretty good shape right now, but I do not see this rally as sustainable. It climbed into this event. So, they beat the stress test by a small margin. So they can survive another recession. Of course. Is this news?
I don't look for drama in either direction for C. Agree they are in pretty good shape and things slowly getting better. Believe positive fundamentals both in the economy and specifically with C will carry the shares higher over time. There are still lots of skeptics out there so the trend is likely to continue higher for both C and the overall market. Once most people start to believe it will be time to hit the exit.