NYSE:C

Citigroup Inc. (C)

122.69
+1.65 (1.36%)
as of Oct 27, 2026, 8:00:00 pm Market Closed.
143 watching
0
DON'T BUY
Owned in the past. US Banks are a treacherous area. Dilution factor is 4-5 fold compared to last year.
DON'T BUY
(Market Call Minute.) A a lot of problem assets that are going to take a long time to work out of.
DON'T BUY
Book value is about $5.75 and this is trading at around tangible BV right now. He prefers Bank of America (BAC-N) right now.
N/A
The gamble is this space is over. You might be disappointed if you put your money in this one. Prefers others. When city group it a buck that was the chance. Look to other banks.
DON'T BUY
Valuation condition tells him that the market is very sceptical about their balance sheet. Looking at some of the potential emerging problems still in the US financials he feels very much the same way. No Fair Market Value so strictly a speculation.
DON'T BUY
Good news is that they have taken the risk of bankruptcy almost away by doing a big conversion of preferred stocks into common stocks so the balance sheet is in much better shape. However a lot of the easy money has already been made.
SELL
Entering into the financial crisis of 07-08 they were considered the leader in financial services. Coming out they were no longer the leader. Have a few issues in the credit area. Diversified into the consumer space quite a bit, which is still reeling. There have been downward revisions in quarterly estimates. Could look for a buy opportunity later on. Better opportunities elsewhere. (See Top Picks.)
DON'T BUY
If you are going to buy US financials, there are better names to play. Wouldn't touch this one.
DON'T BUY
This one is a basket case and he wouldn't go near it.
COMMENT
Citigroup Canada bonds due July 2011? Thinks this company is past the worst of the credit cycle. Likes that they have recently been able to issue debt on their own without the FDIC guarantee. Expects that in the next 8 to 12 months they will be able to start repaying some of the TARP money.
DON'T BUY
In a difficult situation because one of the issues they are going to have. Great global franchise, credit card franchise and investment banking franchise. Retail franchise is actually quite small and this is going to hurt them. Would prefer others.
COMMENT
Options about one year out? If you are going to buy options on this he would definitely go out a full year. Keep it small because it is a very high-risk trade and you will have time working against you.
COMMENT
Compared to other US banks there is more risk of dissolution of capital. Management has not been well accepted by the street. Likes the US financials in general but would rather buy the Financial ETF (XLF-N).
HOLD
CitiGroup Canada 4.54% bonds maturing 2013. Think they have passed through the worst part of the crisis. They are getting their TARP funding and are able to issue debt through FDIC. Solid investment grade. Would hold to maturity.
DON'T BUY
One of the US financial institutions that is in a class that you have to look at as an option. If it is still around in 5 to 8 months you'll probably have some pretty significant gains. But if the financials run into more difficulty they could be diluted to basically nothing. He would prefer something with more of a retail presence.
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