If Goldman goes below $ 175 one should ask Abu Dhabi, Temasek or China sovereign fund to make an takover approach...
If Countrywide declares BK then this could be my first round of buying on the Financials...on this dip that the market will for surely give. Gunpowder is deep & very patient in this enviorment
Looking nice now even tho I could easily see the retrancement and break the lows. This is longterm for me and my C @ $24 WFC @ $26 & WM @ $11 all look nice. Bummed I didnt open a position in JPM,BAC or WB...but im sure I will get another chance to open and start building lower. Good luck all!
I whored out C today long (left a lot of upside in late sucker rally). Was tempted by WM too. Hell, all financials rallied. You should probably cash in on the rally. Think you'll get them cheaper again. Or let it ride and get greedy? Thats when I get burned usually.
I just wander what type of fundamental evaluation do you use? C intrinsic value looks near $9, EPS long term trend 3%, growth acceleration trend -8%. What are you counting on?
Exactly. People tend to ignore what the subprime damage has done to these companies, that previous fundamentals are no longer applicable. Didn't rogers predice C to slide down to the teens? As for me, i'll continue to trade it short against JPM Long.
You have precisely the right idea from an investment viewpoint.. The more conservative investors should look for bank mutual funds and invest heavily now. I mentioned a while back that i was buying stocks of banks with minimal exposure to the subprime fiasco. BanCorpSouth headquartered in Tupelo Mississippi and UCBH in California are two favorites, but there are many others. Many astute investors have the same idea, and as a result these stocks will recover more rapidly then some suppose. I bought fairly heavily when we visited 1250 on the S&P and will be buying more when we later revisit those lows and lower. The stocks I bought are already up nicely. While the big names that have been crushed to the largest extent will be the ones that pay off most handsomely to the patient investor, I prefer the smaller regional banks that have minimal exposure to bad paper, because these banks will hardly miss a beat in their earnings and thus will not take as long to reward investors. Of course, as we move into recession bank earnings will suffer, but "good things come to those who wait." Depending on how much you invested you will either be a rich man or a richer man someday.
Investors should expect the first half of this year, at the least, to be rocky for Citigroup as it reduces headcount, eliminates weak businesses, and copes with weakening credit conditions in the U.S., where the economy is the wild card. Management, in fact, said this latest round of restructuring should be considered part of an ongoing action that will never end. Dont underestimate the long-term potential for Citi. Im not saying they dont have their work cut out for them...cause they really do but Citi is a global brand with significant assets and solid cash flow, the nation's largest bank should certainly be able to weather the credit storm, and once it is over, Citi can resume growth as one of the world's leading financial institutions. Citi has a global footprint...they make a ton of cash outside of the US. I like Citi longerterm obv. ---I do think the worst is yet to come and im looking at re-tooling my startegys a bit and prob selling these 20-40% gains I have made in the last 3 weeks. 2008 looks to be saved by the election (fed) and it could get really ugly in '09...im watching intensly and paying close attention. GL