DONOt get suckered into buying financials. There are lots of better stocks to buy than these damaged goods. There is a marketing campaign underway to make people buy these troubled stocks. Enough of that. We can see your hands.
<p>The management of C has been the pits. If they have a postive story, they have not been able to tell it. Personally, I like JPM better than C. As a daytrader, I am not yet ready to buy the dips, but I am prepared to pick my spots and short the rallies but not on C. As I posted on another thread concerning the financials, C and the foreign oil money make it an unknown. C can be turned around all it takes is more buyers than sellers, and C is the oil money's favorite blue chip, and they HAVE the money to turn the stock around whether that is a wise investment is another matter.
I will continue to short them for the next few years, until the LT moving averages have turned up. Many dire events still lurk, such as bankruptcies, dividend cuts, etc.
C is damaged? yes of course and so is the rest of the sector and I HAVE NOT started buying YET.. But the reason they are getting cheap and going to be extremely cheap is because of this damage. This is a classic case of crisis investing for me. I will be stepping up into the face of danger and fear and then socking away my C, JPM ,WFC, BAC...hell WM under $10 and hell hell i might even pick me up some Freedie & Fannie when the going gets tough. Looking for some killer 4-5 year returns. Citigroup is a global brand and will continue to benefit from robust growth overseas. Besides that they make a ton off non-us consumer credit & will continue to produce strong earnings power. Say what you want but C below $25 I start moving in gradually...if you want to give me sub $20 I will take it!
I agree that C is in a deep downtrend, but it's been pummelled so hard, that we may get a snap back rally. It's almost like a climactic sell off on the monthly. Check it out. If this thing moves to the 23.00 area I'm probably going to start buying. I agree that there is no sign of bottoming, but these were going to be purely speculative swing trades for me, and not long term investments.
I agree that there are way better stocks to pay attention to, but I may just nibble tiny positions for trading purposes.
I don't think the rest of the sector is necessarily damaged. Decent sized correction maybe, but not breakdown. Goldman, BAC, JPM, Wells Fargo don't necessarily look broken. Beaten down yes, but nothing that can't turn around yet. But Wachovia for example has 4 yrs of gains wiped out in 2007. Citigroup also, 4 yrs of gains wiped out. The more I look at these, shorting the financials (the weakest) is something I should consider right now. There is no indication of even a slowing of the downtrend in these broken companies.