Citigroup - Thoughts on Citi

Ticker Symbol: C

Thoughts on Citi

(January 12, 2009) - The impending Morgan Stanley deal is a giant step towards deleveraging Citi's hulking, overweight balance sheet. Long Citigroup positions can only pray for a potential short-term bounce from valuation buyers. On the downside, general market malaise and weakness in the financial sector will continue to weigh on the banking giant. Traders will be keeping a watchful eye on the January 22nd earnings call.

Citi CEO Vikram Pandit has been touting the beleaguered banking giant's improved financial condition, compared to last year, to anyone who will listen. On the flip side, the stock price and market cap nowhere near reflects the asset base Citi controls. The keys for Citi remain a spinoff of assets that market insiders have been clamoring about for years and an unloading of the toxic assets that are crushing its bloated balance sheet.

(November 20, 2008) - Salvation for long positions in Citigroup are relegated to a potential short-term bounce from valuation buyers. On the downside, general market malaise and weakness in the financial sector will continue to weigh on the banking giant. Redemptions at hedge funds and forced selling by mutual funds who can't own stocks below a certain low price could factor heavily into Citi's daily trade. Traders will be keeping a watchful eye on the January 12th earnings call. Citi CEO Vikram Pandit has been touting the beleaguered banking giant's improved financial condition, compared to last year, to anyone who will listen. On the flip side, the stock price and market cap nowhere near reflects the asset base Citi controls. The keys for Citi remain a spinoff of assets that market insiders have been clamoring about for years and an unloading of the toxic assets that are crushing its bloated balance sheet.

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