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Citigroup (C) plans to ask permission for a "minimal" buyback of its shares as part of the...

Citigroup (C) plans to ask permission for a "minimal" buyback of its shares as part of the latest Fed stress test. The 19 largest U.S. banks are due to put forward their plans to return capital to shareholders as part of an annual Fed-supervised exercise, and due by Monday. Speculation is that, among other plans outlined for the remaining banks, JPMorgan (JPM) will seek a dividend increase and a share repurchase program.
Comments (13)
  • SJMDESIGN LTD
    , contributor
    Comments (25) | Send Message
     
    some banks will better rebound than 2012.
    city,jp morgan ,
    4 Jan 2013, 09:08 PM Reply Like
  • Mike Maher
    , contributor
    Comments (2479) | Send Message
     
    First of all, Citi needs to get its house in order if things are leaking so early in this process. Second, if the capital plan was rejected this time around they can submit a revised plan, so why not be more aggressive in the first proposal?
    4 Jan 2013, 09:54 PM Reply Like
  • pfifla1
    , contributor
    Comments (475) | Send Message
     
    the only banks to be long right now - JPM, WFC, C
    4 Jan 2013, 11:51 PM Reply Like
  • 7footMoose
    , contributor
    Comments (2266) | Send Message
     
    It never hurts to ask.
    5 Jan 2013, 06:22 AM Reply Like
  • MexCom
    , contributor
    Comments (3050) | Send Message
     
    My bet is on BAC. Seeing the previous comments here encourages me that there is still much pessimism on their reversal of fortunes. They have much further to rebound and certainly more room to improve their shareholder returns. Any announced improvement in their dividend will get better stock price appreciation in 2013 than the other big banks.

     

    I don't own the stock but only the "B" warrants that are still way undervalued in comparison to the stock. I'm looking for a sharp rebound in comparison to the stock if the common gets into the mid-teens by mid-year.
    5 Jan 2013, 07:08 AM Reply Like
  • clarbb
    , contributor
    Comments (7) | Send Message
     
    A minimal buyback of stock would be invisible in the share price. Citi's shareholders are starved for a dividend. Not only would the dividend provide them with some cash flow, the positive message it would send to the market would result in a bigger increase in the share price than a minimal stock buyback.
    5 Jan 2013, 09:06 AM Reply Like
  • Mike Maher
    , contributor
    Comments (2479) | Send Message
     
    Stock buybacks with the share price this far below book value are a much, much better use of capital compared to dividends.
    5 Jan 2013, 02:11 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (8132) | Send Message
     
    Yep.

     

    They could afford to buy back 80% of ALL outstadning shares by 2018 just by using its free cash flow.
    7 Jan 2013, 02:36 AM Reply Like
  • SHANE06
    , contributor
    Comments (25) | Send Message
     
    Citi should look at both a share repurchase program and an increase in the peanut dividend currently paid. This would show that they are concerned about the long suffering shareholders.
    5 Jan 2013, 10:07 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (8132) | Send Message
     
    BAC will have another good year (up 40% or so).

     

    But C will have an even better year (up 75% or so).

     

    The mortgage boom is only beginning and the yield curve will get very steep.
    6 Jan 2013, 07:03 AM Reply Like
  • 7footMoose
    , contributor
    Comments (2266) | Send Message
     
    I am impressed by your prescience. Have you called Ben B to explain what is going to happen this year?
    6 Jan 2013, 08:06 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (8132) | Send Message
     
    Why don't you call him.

     

    I am busy counting my 2012 gains...
    7 Jan 2013, 05:09 AM Reply Like
  • MexCom
    , contributor
    Comments (3050) | Send Message
     
    I recently revisiting my situation with the "B" BAC warrants that have underperformed the since the Spring of last year. I re-did my trend charts from that time and its a virtual flat line. With the stock up as much as it is - the "B" warrant hasn't performed. The ratio of the warrant price to the stock seems too low. As the stock price continues to rise and the volatility declines, I expect it to start outperforming the stock especially if the stock price gets into the mid-teens.
    7 Jan 2013, 06:19 AM Reply Like
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