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POLL: IS CITI A BUY AT $29.44???

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Posted: #1

  Just wondering what everyone here thinks about it. Personally, I  am conservative and am waiting for the news regarding the dividend and layoffs. But there is a serious part of me that says YES, and BUY NOW.

 On the other hand, why? Why not wait, or why not look at more solid sectors. The financials are not done taking  their bath  now, are they?

 



 
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Posted: #2

  Here is one thought from Doug Kass of The Street....

Citigroup (C - Cramer's Take - Stockpickr) halves its dividend, and the shares briefly trade in the mid-$20s. Asset sales and writedowns leave the bank crippled, and in late 2008 (after another capital infusion by Abu Dhabi), Citi is merged with Bank of America (BAC - Cramer's Take - Stockpickr). Its new name is its old name: CitiBank!

 
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Posted: #3
Personally, I wouldn't take the plunge on anything right now.
 
But if C hits 10-12 (don't laugh, it could), then I'd get interested, but only for the long haul.
 
It's so easy to be negative all the time, and I hate it when people just start screaming that the sky is falling every time someone sneezes, but let's face it, the economy right now couldn't be worse.
 
Oil is skyrocketing as this is being typed, and there is nothing in the works that could stem the tide.  Scholar Ben can't do a damn thing about the credit crunch.  Yeah, the media can and will tout bailout packages, and that will allow some smart longs to take advantage and close out positions.
 
We as a country are really screwed right now.
 
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Posted: #4
It doesnt seem to be a rush right now. Although it seems very cheap, if they cut the dividend (I dont see how, but many think they will) it will go lower for sure.

BAC and C merge???? Oh my.
 
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Posted: #5
there is no fffiiinnn way c hits the 10 $ range,,,it will go lower,,once again it depends on your ability to sleep at nite owning it and also what your time frame is,,,,it is clearly a buy for the long haul imo,,,probably goes to 21-22  but not 10,,,,,if it does than we all got bigger problems
 
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Posted: #6
Boiler-
 
I'll make a box "gentleman's bet" with you on C.
 
It goes lower than 21 by EOY.
 
I say it comes close to 10-12, and that is with no inside info and pre-facto.
 
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Posted: #7
C Jan '09 35 Puts are asking 7.65 right now.
 
This is what WSC would call a "2 bagger" in next 12 months for basically not a whole lot of risk.
 
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Posted: #8
Buy in at 7.65....close 16ish within 12 months.
 
And oh yeah, the US economy has plenty of problems.  I haven't seen it this bad since '73-'74.
 
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Posted: #9
ur on,,,economy is bad ,,as far as im concerned we are already in a recession,,was only 2 years old in 73 so i cant comment,,,,,but if c is at 10 then that means the shit really hit the fan and its window jumping time,,,shit,,bad termonology there as i actually did see people jumping out of windows at the wtc right in front of my eyes,iill have to find another term
 
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Posted: #10
I bought UYG last week as a short-term trade in what I thought was going to be a rally in the financials in January.  UYG's largest holding is C. 
 
Regret the buy right now, as I think we have more downside to come.  I don't think it will be dramatic, but a slow downward drift.  I'm putting a 10% stop in UYG today.
 
Now having said that, every swinging dick out there today, on TV and online, is all of the sudden a bear, usually a good sign.
 
Personally I would wait until they release their financials mid-month, and take it from there.
 
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Posted: #11
what is your time frame on uyg? if its long term live with the short term pain if u can,,u know whats gonna happen, it will dip u get stopped out an then it rebounds without u
 
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Posted: #12
Yeah, Grid, the ONLY thing positive right now is that everyone is negative.
 
That "may" or "may not" cause a short term rally deal in the next few weeks/months, but I ain't waiting or rolling the dice to find out.
 
Oil is going to fuck us all good.  There is NO WAY to avoid rampant inflation and recession now.  Set it in stone........NO WAY.
 
STAGFLATION, here we all come.
 
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Posted: #13
i bought into Under Armour -- UA   Has some potential for growth in 2008...  we'll see.  Need to stop gambling on games and start investing into a REAL portfolio.
 
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Posted: #14
Quote Originally Posted by boiler-room:

what is your time frame on uyg? if its long term live with the short term pain if u can,,u know whats gonna happen, it will dip u get stopped out an then it rebounds without u

No doubt, I can always be counted on for doing the wrong thing.

Don't really have a specific time frame.  It basically depends when I schedule my 08 Vegas trip..........

We'll see, the fact that EVERYONE is so negative today makes me want to hold. 

 
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Posted: #15
i really think RIMM - Research in Motion will continue to perform really well, this company has some invented ideas IMO and i think will continue to grow, IMO that stocks reaches 140 by years end.
 
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Posted: #16
stop gamblin?...what do you think playin the markets is...same thing,,what price did u get in at ua?
 
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Posted: #17
boiler got in last week at 42.5,  it looked like it had bottomed out before the new year.  but im not experienced at all,  just graduated college and looking to build a solid portfolio.  UA was my first purchase. 
 
 it is different than gambling.  if i am wrong i cant really lose it all. can always get out before i have zero.  sports betting you can lose it all easier than the stock market.  but im a beginner and just getting things rolling.  Lets go UA in 2008!
 
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Posted: #18
is Citigroup a "good buy"?  sure.  "goodby to your portfolio's value"
 
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Posted: #19

 How low will C go??  We have a few guesses here. Currently trading at  $28.57, at a P/E ratio of 7.67.



 
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Posted: #20
cutting 5-10% of their workforce

its got a little while to go unless of course all of their skeletons are out of the closet........
 
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Posted: #21
C bounced pretty nicely off lows today.

I didnt see mention of a dividend cut..

A 5-10% workforce drop doesnt seem that drastic to be honest.  
 
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Posted: #22
im still in long term,,not scared at all
 
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Posted: #23
Quote Originally Posted by wallstreetcappers:

C bounced pretty nicely off lows today.

I didnt see mention of a dividend cut..

A 5-10% workforce drop doesnt seem that drastic to be honest.  


they employ 324000 people
 
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Posted: #24
Koaj,

Relative to what the street was thinking, it isnt that bad.

When the markets contract, the brokers and banks dump employees..cyclical as you know.

If they were going to drop drawers it was probably a good time to do it, thus maybe they ARENT going to be dropping drawers as many expect.

Also, we arent talking a Citi at 50 bucks here, it is sub 29..thus any job layoff reaction is already priced in and THEN some..


 
 
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Posted: #25
I think its a buy in mid 20's
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