I have no position in C, but I find it hard to believe that the stock will outperform other large-cap financials over the next 12 months, given that the US Government has approx. 7 billion shares (about 25% of shares outstanding) that it intends to sell. C could go up if the broader market went substantially higher, but there are other financials out there without a overhang.
I bought some C today. Not alot but enough to take a look once every few days to see how its doing. downside risk appears to be very small at this point and I normally don't like to buy stocks much less a stock that is less than $5 It must suck for anyone who bought a week ago but going forward from today it appears to me that a floor has been set. Now they just need to figure out how to get some positive things happening (no easy task granted)
Take a look at Citi. Gov is huhge stakeholder, yet they have yet to unload their shares, they could have but where their any buyers? I do not think Citi is going to make it as a whole. The commerical RE has yet to really take a dive, its just about there. How much 'Junk" Commercial RE wise, is C holding? I think BAC is stronger and will survive next's years Blow Up of Commerical RE and the next storm on the horizon....less spending by consumers. The just put off "Forclosing" on many of their bad "RE". Why is that? Because they found some holiday spirit? A lot of things do not look right with CITI. But if you can take the heat and take the risk to loose everything you put into Citi......why not. As long as you can loose the money with out it changing you lunch plans and you think odds are in your favor......why not.
that was my point a month ago I said it will go downside, most people did not agree with me. I will wait little more see where it goes. Best of luck
The government is good lately in assisting unnecessarily then further complicating matters by not leaving less than well enough alone.