cstauffer

Citigroup Looks Overpriced

C is a purely a speculative investment in my book. As a professional investor, meaning that I am trusted and use my discretion to invest other people's money, no one can truely say that they understand Citi's businesses and therefore the various risks inherent in this company. For those who point to insider buying, technical analysis or simply blind faith, you are not acting as investors, you are speculating or betting that because insiders are buying or certain technical patterns have developed that the stock will continue to rise. These reasons are void of any "homework" as Cramer says needs to be done before buying a stock. If the "homework" was done, most everyone would come to the conclusion that their risks are still too opaq and that the visibility into their future business model is non-existent. What this means is that they cannot be adaquately valued and therefore any purchase of C can only be defined as speculative.