Thread: C - Bullish or Bearish - Signs Say Bullish - Nervous Nellys Selling

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  1. #1

    Default C - Bullish or Bearish - Signs Say Bullish - Nervous Nellys Selling

    First of all I'm not an expert in the stock market and very much so self educated. As I look at the facts I would like to get feedback as to why the price keeps on falling. I completely understand that C is involved in the Greek Bailout and that if Greece still fails C is going to take a hit along with a few other "Money Center Banks". I'm still holding on the stock it showing strenght / movement (Volume).

    Currently trading at $3.82

    PE - 42.39
    EPS - .09
    Last Quarter showed positive earnings of .15 per share
    Internal Holdings - 34%
    S&P upgraded to 4 stars being a buy as well as other analyst.
    Analyst give it a 12mo target of $6.00
    P/B is below auction price - .75
    P/S - 1.5 which is an average buy rating on Price compared to sales
    EPS - EPS Growth is the highest rating in the Money "Center Banks" industry
    RSI - RSI is in an upward trend
  2. #2


    I feel that once the worry warts leave the stock might start to make its move bullish and start movement upward.

    I'm looking for feedback on anything that I might be missing?
  3. #3


    Citigroup Inc. (NYSE: C) is truly a global bank. With operations in more than 100 countries, it leads in consumer banking, credit cards, corporate lending, investment banking and brokerage. But its forays into the U.S. mortgage market, and its huge exposure to the U.S. retail and corporate banking markets, created huge losses from which the company is still recovering.

    Citi, guided by a prudent and savvy investment banker, Vikram Pandit, has embarked in one of the most ambitious and difficult transformations ever attempted by a financial institution. It is shedding bad assets, cutting costs, raising capital and has segregated the impaired assets and businesses that Citi would like to dispose into a so-called "bad bank," a subsidiary by the name of Citi Holdings. The success of the restructuring will depend on both Citigroup's execution and on the underlying strength of the U.S. and global economies.
  4. #4


    And how is the restructuring going? So far, so good. The bank just posted a profit and it is on its way to end the year in the black.

    Indeed, Citigroup surprised the market with first-quarter earnings of $0.15 per share. Citi beat estimates on all fronts: consumer credit, trading activities, and valuations of its impaired assets in Citi Holdings. The bank now sports a 9.1% Tier 1 capital ratio.

    This is a typical phenomenon of a classic cyclical play (banks) in an economy that does much better than the expectations. Remember, banks are leveraged to economic activity in the markets in which they participate. So, when things are good in the economy, they are really good for banks.

    The details of Citi's first-quarter revealed an economic recovery that's accelerating faster than the market expected. In addition, the U.S. Federal Reserve's policy of zero interest rates obviously provides a huge boost by greatly reducing funding costs and expanding the net interest margin (the difference between borrowing and lending rates, which results in the gross profit of lending activities). It also boosts the economy and thus improves results for Citi.
  5. #5


    Keep in mind that the first quarter is typically strong in trading, and this quarter was no exception. The real surprise in this report is the strong performance in trading of fixed income. This reveals that the bank, despite a loss in reputation due to its impaired assets and government rescue, was able to retain market share in this business.

    These three trends are likely to continue with some variance as we move forward.

    Citi's trading revenue, which is comparable with its rivals, demonstrates the bank's resiliency in this activity. In fact, in most activities, Citi seems to be more stable than most of its competitors. Still, Citi is looking to stay focused on its incredible strengths in global consumer and corporate banking, de-emphasizing trading.

    On the credit side, the very strong global recovery - especially in emerging markets - helped drive credit losses down. In the United States, however, consumer credit losses increased, but mortgage losses abated, leading to minimal charge-offs there.

    Finally, Citi has created its own "bad bank" by shifting its impaired assets into Citi Holdings. Citi was able to reduce its exposure to these credits, and since the prior markdowns had been so dramatic, the bank actually was able to produce a profit as markets rallied. This positive trend in valuations has allowed Citi to continue paring its exposure to this sector.

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