NYSE:C

Citigroup Inc. (C)

122.69
+1.65 (1.36%)
as of Oct 27, 2026, 8:00:00 pm Market Closed.
143 watching
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COMMENT
Most US banks have come back because of the incredibly steep yield curve. Short-term rates are very low and 1yr-30yr rates are much higher so it’s very easy for banks to invest in the bond market and make huge spreads, which is very good for earnings. This one is still a horrible bank.
BUY
Interesting story at these levels. Government will slowly get rid of their position. Making a lot of cash because they are not lending to anybody. Great international and credit card franchise. Not sure if they have the ability to generate the type of earnings that they did in 2005-2006. Will certainly go up in the next while.
DON'T BUY
For any of the US banks it will take time for performance to improve. A lot if them are trading at around 6 to 10 earnings.
TOP PICK
Citigroup Bonds: 5.16% 05/24/2027 Thinks they have gone through the worst. Very, very good turnaround. Not super liquid so it takes time to get into this position. Have a good franchise. Have proven they can cut costs – management is doing a good job.
DON'T BUY
The problem with US institutions is that they are large, leveraged entitles. There are so many assets of questionable value. There is so much uncertainty as to what assets on the balance sheet are worth that it is hard to get a comfort level as to what the true book value of these institutions is.
DON'T BUY
Have good international holdings. Thinks it will go up but are constantly de-risking themselves because US government owns them. Prefers others that are safer.
BUY
In the long term he thinks they will come back. Government ownership is going to start to dissolve away. From this level you can look at it as a trading position but thinks they will come back and start to deliver. Sees decent earnings growth this year and next.
DON'T BUY
Still a bit of a work in progress and doesn't feel it is time to go into it yet. US government at one time owned 36% of outstanding shares and they still own a lot of them.
DON'T BUY
Balance sheets of all US major banks are stronger than they were. Will be interesting to see impact of credit write-downs and provisions for bad loans. Major concern is another soft period in US housing. This would not be his choice because of their dependence on the capital market side of things.
DON'T BUY
Company will survive, but it will be a while before they start paying dividends again. Still have a lot of problems. This is not something he would own within the financial services sector. There are a lot better bets in the Canadian market.
BUY
Jan 2012 options. He doesn’t play options but he owns C-N. Lot of smart investors have put a lot of money into it and he is pleased to hold it. Could hold a lot of surprises.
DON'T BUY
U.S. Treasury sold over $1 billion worth of stocks. They do this when they think the price is right and will do it in a timely way over a long period of time. Not a fan of this bank is he can't see the drivers of their growth. (See Top Picks.)
DON'T BUY
Was on the verge of extinction not that long ago. Managed to survive with severe dilution. Wouldn't feel comfortable only in this one.
COMMENT
Bonds. Higher yields, but he tends to buy these 1 year and under because of the risk element. Would be careful.
DON'T BUY
Wouldn't buy. Doesn't pay a dividend and balance sheet is impossible to analyze. US economy has a lot of risks with housing and credit card losses. As a Risk trade it looks attractive and is too big to fail. A traders’ stock.
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