Jim Rogers: Citigroup is a buy at $5

Quote from turkeyneck:

"The reason it's so depressed is that no one really knows how bad it will be, but we think that sometime in 2008 there will be clarity and we'll start to see buyers come back," he says. "They might have to cut their dividend -- which would not be so terrible -- to shore up their capital base, but they're not going out of business. They will weather this storm."

The manager says his analysts have put their money where their spreadsheets are -- buying more Fannie, Freddie and Citi for their personal accounts than at any time in the past five years. "They believe they have properly analyzed these franchises and should buy even though they don't know when the turn is coming," Pzena says. "There's no dissension about this position within the firm. Buying low is a strategy that has never failed to work."

http://articles.moneycentral.msn.com/Investing/SuperModels/HowTheSmartMoneyGotItWrong.aspx
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real turkeys. article from 1.08
 
Almost there. C dropped from about $30 at the time of the original post, to just under $12 at today's pre-open. Another $7 and we are there :-)

Unfortunately, at this point I am afraid to buy Citi even at $5. The bank will survive (or be saved), and depositors will be Ok, but there is now a real probability that shareholders will be wiped out.

full disclosure: I'm short WFC and BAC, no position in C (yet).
 
Quote from boost123:

Citigroup will never go down to $5 in your life time!! or Jim's lifetime with CITI's assets over 1,000 Billions Dollars!!

Citigroup Feb Calls on 30 strike.

CBF.X Last 2.05 Vol 2,949 2,925 strike30.00 :) [FEB Contract]

Its a buy at this level!!

:p
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Last post for BOOST123 was 12/30/2007....trading? homeless? :(
 
Citi says credit card losses may rise through 2009

Bank suffers $1.4 billion hit from card-backed assets in latest quarter

By Greg Morcroft, MarketWatch
Last update: 1:44 p.m. EST Nov. 2, 2008

NEW YORK (MarketWatch) -- Citigroup said that it lost $1.4 billion in the third quarter from credit card securitizations and that it expects such losses will continue, possibly reaching record levels in 2009.

http://www.marketwatch.com/news/sto...x?guid={BE8D388F-5173-4BC3-A880-DC409509989C}
 
Quote from turkeyneck:

Citi says credit card losses may rise through 2009

Bank suffers $1.4 billion hit from card-backed assets in latest quarter

By[/url]
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wow.....thank you for that "unexpected news" you have just shocked me with this unexpected news. what is next? maybe ncc going under? wow what a shock
 
Rather than C at 5.00 I prefer UYG at that price. Little risk of this fund going to 0, plus it's somewhat leveraged (although for long-term, not actually 2X like many people think.)
 
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