Discussion in 'Stocks' started by brokerboy, Nov 5, 2007.
Seems down a lot from highs and its a 5.60% dividend at this level.
Depends on your time frame.
If you can wait for two months without being scared, then its a buy.
Write the puts, lots.
The financial's trend is down why would you buy ? ?????
All supports are sold like fake Rolex watches.
It pays 5.6% in divâs and itâs down 40% for the year. C is not going out of business. I donât think itâs a trade as much as an investment. In 3 years you would be nuts to think this wonât be higher plus your getting the div. I think its better then having a CD. I can see it not being a buy but I would not shocked if this is a short.
11/5/2007 1:24 PM Buy To Open C LU 50 $1.79 $9,057.49
POS will go higher and bounce by next month. Then re-short it
I say the stock pulls a nortel or lucent or jdsu, goes to 2-5 and sits there until it does a reverse split. If only 17%, as they say, of total losses written down for the banks,has been exposed, would you stand on the tracks of a train that is going to rip right through the station without even stopping to get passengers? You could have said the same about crox, tol, or any other "big name" high flyer. You would be hurt very bad had you bottom fished on crox. I remember the same post about Amrep AXR, right after it was slashed up in the 100s. I remember one person asking of what a good valuation would be. I told him 30. Everyone laughed and said it would never reach that number. It blew right passed.
We had the same story in 1998 after LTCM. We got a terrible August, September, October 1998. At the end of April 1999 everything has been forgotten and Citi made new highs...
THIRD QUARTER SUMMARY
â¢ Revenues were up 5%, led by 29% growth in international revenues.
â Global consumer revenues increased 14%, driven by international consumer up 35%, which included a
$729 million pre-tax gain on the sale of Redecard shares. Excluding the gain, international consumer
revenues increased 21%, reflecting deposit and loan growth of 18% and 29%, respectively, and higher
investment sales, up 26%.
C is a long term investment. At these levels and lower it is a valid buy consideration. Today's C situation is similar to that of MO years ago with its legal risk.
Will C have more write-downs, sure. How much? 20-25B in total charges is currently being thrown around (almost 12B is the current number and the stock is baking in more at these price levels). Is the dividend safe? Right now cash flows are more than adequate to support ongoing dividend GROWTH.
The biggest risk, that of poor management, has been alleviated and any person that takes the job next will have all the backing of the board to fully disclose all the warts. Most likely the declarations will be aggressive and the new management will have taken a good opportunity to build in very low expectation that will easily be beaten.
If you have time, C at these levels (and any cheaper) is definitely a value INVESTMENT.
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