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Love in the Citi Again?

March 10th, 2010
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03.10.2010
02.13.2016 update: Broken stock charts. Unable to repair (removed)

Love in the Citi Again?

original article written by Net Advisor™

Citibank seems to be on the move again. I have been bearish and generally short on Citi since 2007. I have traded Citi at times in 2009.

I have been watching the trend, stock volume, options trading volume, the news, and think that there is a good chance this thing may be on the move again.

Remember late summer and fall (2009), “junk stocks” had a huge run. I talked about this here:

08.10.2009
Junk Stock Rally: Ka-Ching or Ka-Boom?

The stocks tanked again (Citi and AIG especially). Now they seem to be moving again.

Bought an unspecified numbers of shares yesterday. A run for $4.00 is prob in the cards. There is a chance this thing does some nutty up move over the next few years, but with volatility and people ready to hit the sell button before you turn open the computer.

Short term (next 2-3 mo) hard to call. $4.25 to $5.00 again? Maybe. No guarantees from management of course. All bets are off if FED raises rates, economy has “double dip,” S&P fails to continue rally.

Risks:
Including but not limited to:
Commercial real estate portfolio = unknown
Credit Default Swap liability = unknown
Consumer Mortgage Portfolio = still not too hot

Possible Reward:
Technical Trends
Money Flow
High Trading Volume
Momentum
Short Covering
Any positive news.

It would be interesting if Barclays made a bid for Citi. No news on this but Barclays said they are thinking of wanting a U.S. bank.

03.09.2010
Barclays eyes large US bank deal

Royal Bank Eyes U.S. Banks With $10 Billion in Assets (Update1)

ANY takeover announcement is more than likely to drive bank stocks across the board higher. Remember this is just talk, and it is believed there are no current talks with any U.S. bank.

This is not a buy recommendation on any stock.

If you do it, use risk capital. Money you can afford to lose.

I could be out of this anytime without notice. I’m prob out on any big short term move. The stock could drop again before it goes higher. Anything is possible. For now, I’m in.

Please be reminded of this general Legal Disclaimer.

Happy Trading or Investing!

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