Seeking Alpha

Citi only major bank trading below tangible book value

  • At about $49, Ciitgroup's (C +1%) stock sells for more than a 10% discount to tangible book value. Sitting at the top valuation-wise is Wells Fargo (WFC +0.6%), trading for nearly double its tangible book.
  • Citi has been the weakest performer of the TBTFs this year, with its exposure to jittery emerging markets as good of an excuse as any, but the shares were trading below book before that.
  • Trading at about 1.2x tangible book are Bank of America (BAC +1%), Morgan Stanley (MS +0.6%), and Goldman Sachs (GS +0.9%), while JPMorgan (JPM +1.1%) sells for 1.4x tangible book.
Comments (6)
  • SivBum
    , contributor
    Comments (1949) | Send Message
     
    "Book value" based on Mark to maturity or market?
    6 Mar 2014, 09:50 AM Reply Like
  • rijensen
    , contributor
    Comments (865) | Send Message
     
    I'm out on 9-19-2013 @ 52.48. I'm still very glad I did it. Citi is like M$, those past glory days are past. They lost me for certain when they did the reverse just to make it "not look so bad". Stuck with BAC and I'm glad I did.

     

    I think they have lost the critical mass of size, diversity and capability. They are lost in the desert and there is no Lawrence to help them out.
    6 Mar 2014, 09:57 AM Reply Like
  • leondavis
    , contributor
    Comments (3) | Send Message
     
    Nothing can help C now? Are you saying it's a sell? Or is it almost a buy? What will the price be in five years ZERO?
    6 Mar 2014, 11:15 AM Reply Like
  • mphill47
    , contributor
    Comments (572) | Send Message
     
    With C highly dependent on the Euro economy it may be a while till it gets close to BV. In the mean time let BAC run. When it finally stops then go for C '!
    6 Mar 2014, 11:50 AM Reply Like
  • Jason B
    , contributor
    Comments (372) | Send Message
     
    Past glory days have nothing to do with being an amazing value. Past glory means $550/share. It can get to $100 and still be at 1.5xBV.

     

    Greed will keep people away. In the meantime load up.
    6 Mar 2014, 05:59 PM Reply Like
  • Dorleans
    , contributor
    Comments (26) | Send Message
     
    Very simple explanation. The U.S. government is running citi in it's own non-business way (behind the scenes). Do you want to partner with our government or Dimon?
    6 Mar 2014, 09:27 PM Reply Like
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