Anuj Varshney

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ON: Sun Apr 13th 16:54 PM
Commented on:
After GE's Miss, Who’s Next?

I guess he is referring to the anonymous UK analyst, who has recently predicted a $10B writedown. He might be right in his predictions about the writedown, but I donot know what kind of sources he gets these information from.. i wouldn't trust him more than I do a psychic. But even for once if we assume writedowns to be $15 B, it is 13% of present market cap (112B), which might reduce the the stock price of 23.36 presently to around 20 (Notice the last earnings announcement when the writedowns were $18B, the stock trend starting with stock price of 26). Although it might seem that the 13% reduction might reduce growth potential of the firm, but its book value of $22 at the end of 2007 , which by the $15B might become $18.5(on the god-of-pessimistic assumption that Citi has no ability to generate returns on assets, indefinitely) i donot really know how he came up with this wierd figure of $12. Anuj Varshney
Baruch College
ibyleague.blogspot.com
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