I've been trying to look at what Citi may have been positioning themselves for leading up to 1st Qtr results and the Annual Shareholder meeting. Pandit has an Engineering background and so I think he has had a plan for this event.
Q1 Results - Last year was .15/Share, Est are for .10. I think Pandit wants to have a blow out Qtr again - at least on par profit-wise with 2010. The $1.4B dividend in Jan helps, lower loan loss reserves and continued emerging market profit gets him in that range. He absolutely doesn't want to go in on a bad quarter - he took that in the 4th.
Upbeat outlook gets Citi some early week (4/21) upgrades (back to where they were in December/Early January). Mayo will still complain about the ATMs with a $4 price target.
Stock may approach $5 - Pandit doesn't have much control over that aspect so he focuses on hitting the profit number.
R/S is hated here but cheered by the major holders. They couldn't do it last year until Citi showed it was back on it's feet. It takes Citi from a Penny stock to a respectable priced security.
The $68B shelf offerings give them room to convert high interest debt for lower interest before inflation starts kicking in a Fed raises rates. There will be no stock dilution - just bond offerings like they have been doing.
It would be nice to have a sale finalized by 4/21 so either EMI, CitiFinancial, FDIC or some other multi-billion $ asset sale from CitiHoldings
Coming out of the week of 4/21 I expect(hope) Citi will be pushing $5 so the R/S takes place north of $50/share.
Just MHO - GLTA
ditto GHF thank you for the analysis.
On a personal note- I know that when I travel abroad to the asian continent I will only rely on C banks. I don't know who else on this mb has similar experience but if you travel overseas you need access to an ATM and for me there is really no other choice.
"The Japanese media is too calm for my taste but the foreign media has been over the top."
True that... but the foreign media has a short attention span... after the first week of 24/7 frantic reporting, they moved onto to Libya, for about a week..., now you don't hear much...
Just look at E-trade, see how after the stock split e-trade hasn't yet recovered to the level it once sold for, also AIG this giant hasn't yet recovered after their reverse stock split......Citi group will just tie-up your money and never grow...See the E-trade chart link.
The only thing you are going to see when citi group completes its reverse stock split will be the share price losing half it value. This company has too much exposer in the middle east,as well as in Japan....Next earning report will be disappointing....