Citigroup, the nation's largest bank, said on Friday that it lost $5.1 billion or $1.02 a share a share in the first quarter, driven by $6 billion of pre-tax write-downs and credit costs on sub-prime related direct exposures. The firm also announced write-downs of $3.1 billion on funded and unfunded highly leveraged finance commitments, a downward credit value adjustment of $1.5 billion related to exposure to monoline insurers, write-downs of $1.5 billion on auction rate securities inventory, and a $3.1 billion increase in credit costs in its global consumer business. The result compares to a profit of $1.01 a share a year ago. Analysts polled by Thomson First Call had expected the firm to report a loss of 95 cents a share, on revenue of $12.8 billion. http://www.marketwatch.com/News/Story/Story.aspx?guid={4170F11F-B23E-42C4-9EFF-422598146B80} They're not cutting the dividend further? What am I missing?
I thought Jim Rogers said he would see C trading at $5 ROFL!! Maybe he said $25 and people misheard. So far having bought close to 10,000 shares at an average price of $23.50 I am finally up on this position (phew!) So where is this Meredith Whitney now? ....actually, isn't she with GS? Explains the stream of bullshit emanating from her mouth!
Probably having her intermenstrual now. I remember her and Bove from Punk/Ziegel battled it out just three weeks ago when Bove said it's time to buy the banks and Meredith insisted banks were still 50% overvalued. I guess we will know the final outcome in a few months.
I say the final leg down DOES happen... It just takes lot longer than we expect. ie 6 months from now. In other words, it goes up, then crashes again (assuming we actually get a recession) when the credit default swap crisis comes to roost (we need real major defaults for that to happen though). I wouldn't be short any financials here yet ... Maybe in a month. JPM above 50 will be the best short of all.