Well, this week has been pretty good, wouldn't you agree?
Llyods (lloy) (lyg) and Citigroup (c) have performed rather well.
If you had invested when I first mentioned them in my blog, then you will have benefited from a 20% gain this week alone.
Once Citi reached the invisible ceiling of $4 a share, it took off, and the brakes have been let off. It's important that Citi reaches the $5 a share range for it to be enticing to the fund managers. Watch for the increase in 'Institution owned' percentage. The benefit of an increase in institution shareholding is that they stabilise the share. They tend to hold onto the share for 12 months at a time, so you don't experience the volatility and fluctuations otherwise with individual shareholders, who buy and sell to capture profits.
Citi's next earning report is due on april 19th. There should be steady increases in the share leading upto this time. Make sure you leave a cash reserve to counter the effect of any downturn as a result of Citi missing the expectations. This will help to hedge against a dip, and capture a lower level to benefit from increased gains when it returns upwards.
Lloyds Banking Group is experiencing a steady and progressive increase. The volume is nothing to write home about, but it seems that the shareholders realise the value in it and are not selling at 'market' but with a limit. Lloyds should continue to experience a steady increase leading upto the next earnings report.
Allied Irish Banks is not out of the woods yet. There was a short lived rally, but there was no substance behind it or catechist. I still wouldn't say it's a buy yet, as the impairments are not under control.
ING is a good stock. I would buy this one, but there is better value in Lloyds, and Citi. The potential for growth with these two far outweighs that of ING. Nevertheless, it is a good stock and should experience increases.
There is alot of negativity out there still with regard to Citi. The fact is, yes there are still toxic debts at this bank, but citi is the largest bank in the world, and has their fingers in so many pies. Citi is winding down the holdings portion of the company that houses all of the bad debts. Selling off these assets, will enable the company to benefit thoroughly from the profits of the Citicorp portion, which will experience continued growth in emerging markets. Don't be mistaken, this bank has over 200 million accounts and growings. It has a global credit card network, and a successful retail bank. It has over $1.38 trillion!
$20 Billion profit is not too out of reach when you take this into consideration, combined with the growth from the emerging markets.
Anyway, these two stocks are buy and hold. 3x price within 2 years.