Jim Rogers: Citigroup is a buy at $5

Discussion in 'Wall St. News' started by turkeyneck, Dec 27, 2007.

  1. Rogers, who is short Fannie Mae shares, is also short Citigroup (C, news, msgs) and highly negative on its prospects, too.

    "Technically, it's bankrupt, with gigantic off-balance-sheet derivatives positions whose value it cannot possibly know," he says. Though he believes some large banks can and will go under in the next year or two under the weight of billions of dollars worth of bad loans and blown-up derivatives positions, he doubts the government will allow Citi or Fannie to fail. "They'll nationalize them in some way. It's wrong, but they can't let the two largest lenders in the nation go down."

    The fund manager, who has traveled extensively in emerging markets and lives part of the year in Asia, says sovereign wealth funds in Abu Dhabi and Singapore that recently made large investments in Citigroup and UBS AG (UBS, news, msgs) are likely to lose a lot of money on their ploys. "They're making a big mistake; these banks have many more problems still ahead. They should wait until these companies are really on the ropes a few years from now . . . and trading at $5 a share."

    But aren't they supposed to be the smart money? Maybe not. "I know these people, and they have never given me the impression that they're smarter than anyone else," Rogers says. "They have gigantic amounts of money, but they've made a bad judgment in these cases."

  2. I agree about the sovereign wealth funds being pretty much clueless and a great contrary indicator.
  3. The sovereign funds have more dollars than sense.
  4. boost123


    Citigroup is the No1 company in the world. Bigger than Buffett Berkshire Hathaway and Microsoft put together.

    Citigroup is a BUY at this level!!!!!!!! Trust me!!

    Jim Rogers is a big clown earning big salary and bonus and spews out lots of crap! maybe he is paid to spew out crap?

    Citigroup assets are 1,900 Billions $$$$ [rank No1 in world]

    Berkshire 248 Billions $$$$$ [rank 16th in world]

    Microsoft 12 Billions$$$$$ [rank 66 in world]

    Even Citigroup profits is equal to those 2 companies put together!

    link http://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000_Rank.html


  5. Gotta go with Jim on this one. These Arab boys are getting played for the suckers they are. Should stick to what they know, buying gold plated mercedes, money better spent. Oil runs out and they're back to camels and tents.

    Now how do I short NYC real estate? next year is when it goes down the shitter with no bonuses and mass layoffs. Princeton maths whizz waiting tables, going to happen. Just a matter of time.
  6. 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!!

  7. Excellent Commentary All

    If there ever was a time to consider shorting the oil welfare and commodity states, the time is getting close.

    Every time when books regarding the hot topics of the day dominate the shelves, it is time to wind down what is at hand.

    It is not to say that the subject matter is fallible, it is to say that the related prices are either very high, or very low.

    One should respond accordingly.

    Also keep in mind, foreign investors are dealing with two items, namely bargain US dollars, and relatively high local currencies.

    The import export business has always had this issue to deal with.

    One other thing about Rogers is that he is now a book seller.

    Book buyers beware.
  8. boost123


    " One other thing about Rogers is that he is now a book seller. "

    Correct! he spends more time writing books and promoting his stupid books.

    He was DEAD WRONG when he decided to be bearish on India!!
    Perhaps the buyers of his books also missed out on India growth.

    Now he is preaching that Citigroup will go down to 5 Buck$.

    I guess bad news always sells books.

  9. boost123


    A question to all members that visited this thread:-

    If your parents had FIVE children and they named them DELTA, THETA, DOW, DAX.




  10. Jim Rogers says C is a buy at $5?

    Jim Rogers also said Base Metals would be lot higher in 2008 than they were in 2007


    Jim Rogers is worth buying at $5, and not a cent more!
    #10     Dec 27, 2007