C has had a great run since early March. I believe it is still undervalued and will go higher the rest of the week. The Morgan Stanley news, in regard to selling the government shares, is only the latest reason to buy C.(in spite of the stock going down on the news) I believe it was classic, "buy on the rumor and sell on the news". In a day or so we will see the details of the Morgan Stanley/US Government/Citigroup stock deal. I believe this news and the anticipation of earnings on April 19th, will help C continue upward!
Here are some other reasons why: (updated)
Paulson added to his position in the 4th quarter
Soros started to buy in the 4th quarter
Citigroup is undervalued based on its book value. (about $5.35)
Hedge funds bought 10 times more C in the 4th quarter than they sold.
There is the possibility that Citigroup will buy back some or all of the US Government shares.
CITIGROUP IS A BANK, THEY BORROW FOR NEXT TO NOTHING AND THEY MAKE LOANS FOR A MUCH HIGHER INTEREST RATE!
There is a feeling in the air that C is going much higher in the short term. (I originally posted this when C was about $3.45.)
Pandit did well before Congress on 3/4/10.
Cramer believes few stocks "offer as much upside" as C, especially after the government "starts unloading its Citigroup holdings". ("Mad Money" 3/5/10)
C must have broken one or the other of those moving averages!
Citigroup priced a preferred offering, (3/9) and the market "loved it".
"Bullish comments from several different sources" (In mid-March)
Pandit made a great presentation on 3/11/10.
Dick Bove (the analyst) on 3/19/10 stated that he believed C will double to $8.50.
1st quarter earnings will be announced in mid-April. I believe they will beat expectations.
On 3/25 Citigroup signed up for loan modification program. (for homes)
C has not gone up over 23% since March 3rd ($3.40 to $4.18) for no reason.
The, soon to be released, (by tomorrow 3/31) details of the Morgan Stanley/US Government/Citigroup sale of C shares.
C IS THE LEAST EXPENSIVE BIG BANK STOCK, BY FAR.
(Not that it matters, but C closed at $2.69 on 7/27/2009 and C closed at $5.23 on 8/28/2009.
Different times, I know, but if it could happen once.................................)
One thing that I didn't see in your list and any of the posts that follow it is that C is the only American bank with truely international dimensions. So even if the US economy lingers in flat growth, a bank like Citi is there in China, India, Brazil, ... making money. This is one of the major reasons, aside from its good or great management, that I like this bank. It is my hope that in five or six years it will be at sixty or beyond. Anyway, thanks for giving your reasons to like Citi all of with which I am agreement.
As I have said many times on this board, the rich and smart want C to go much higher...they got this country in control http://fundville.com/ssearch.php?s=c Re: Here's Why C Will Continue Higher
I disagree. (that I am "way too bullish" at this point)
I liked C under $3.40.
I still like C at $4.07.
(C closed at $4.18 on 3/11, and $3.89 on 3/15, and $4.05 on 3/17, and $3.90 on 3/19, and $4.31 on 3/26.)
Some of you have very short memories.
This is not the end of the world....
C, I believe, will go much higher from here.
Every now and then the media pumps the poster child of zombie banks and they get the yahoo crowd piling in and the stock has a run and everyone is touting 5 dollar calls.
Everyone from Soros to mysterious Saudi princes are supposedly backing up the truck.
The govt flooding the market with yet more shares is a "good" thing, and an entire laundry list of how citi will make everyone rich is posted.
The stock jumps from its mediocre 3 and change range to the mid to upper 4 dollar range and those 5 dollar calls are gonna finally pay off!!
Then, somehow the market just dosent understand what a great deal a bank underwater for trillions shouldnt have an infinite PE and the stock tanks like clockwork.
All those trillions on the sidelines just dont get it and miss out once again on the deal of a lifetime.
The 5 dollar brick wall(you see those hedgies will all buy in cuz its a 5 dollar stock, they say) is hardly ever touched let alone breached.
Buying in when its over 4 is a nice way to help buy goldman saks traders buy a bit more coke to sniff off their Ukranian escorts asses.
If you think 4 something is a good deal, just wait a few weeks and 3 something will be a better deal.
i have a lot of shares but i will buy more if it drops. it dropped because the usg announced it was going to sell shares. we all knew that. should have gone up instead. oh well more money for longs in end if you add.