think before you write

A Tale of Two Banking Worlds

How 'bout the simple fact that you could liquidate the bank at 50 cents on the dollar and still get 5 times your common equity dollar. Marry that together with it being the world's biggest retail bank brand and the US gov't is standing behind it, and now in it. There are many other reasons but space doesn't permit. You'll note most of the detractors don't do any real financial analysis. I suggest that you compare what you get for what you have to pay for C versus the other large caps. It looks good to me!


On Jul 22 11:05 PM sleepless_on_wall_street wrote:

> Does anyone want to offer some analysis (or even opinion) about why
> I should consider buying C? I have read some commentary the past
> couple of weeks recommending C as good investment, but I didn't bookmark
> anything so I don't where these comments might have been. I don't
> understand how a bank that appears to be undercapitalized (if you
> believe the stress tests) and is losing many billions quarter after
> quarter from operations can have any prospects other than selling
> off assets until it goes out of business.
>
> Anybody want to enlighten me?

Citigroup: Bargain Basement Price for Long Term Investors

One of the few independent thinkers writing on this blog. Nice job!!

Citigroup: Bargain Basement Price for Long Term Investors

So don't buy it move on...by the way, time will show you how wrong you are if you're interested.


On Jul 12 03:47 PM Fourpenny Guy wrote:

> But...you missed some key problems with C:
>
> 1. Dilution is about to occur from 5.5 to 22 billion shares with
> a reverse split in the next year. That means any shares investors
> buy, today, will be reduced. As Citi shrinks, profits will shrink,
> and C's market cap, will, too.
>
> 2. Citi is selling profitable assets, including 51% of Smith Barney,
> thus profits over time will be lower, not higher, as they approach
> typical bank earnings growth.
>
> 3. The OCC stated that C, with a market cap of 14+ billion, has 264
> billion in derivatives. That means C is overleveraged almost 20
> times with these so-called investments. Then, C has a problem with
> off balance sheet accounting, too.
>
> 4. C is still trying to get away with breaking the law-case in point-money
> laundering issues in Japan.
>
> 5. C's CEO has never run a business as large as Citi, sold his Hedge
> fund to C, the hedge fund failed, and yet, Vikram is still CEO.<br/>
>
> 6. Citi is unable to repay TARP-pretty pitiful considering they're
> so well run(according to C).
>
> 7, Management at the lower levels tends to be uneducated and dimwitted,
> hence the control issues C constantly faces. No one with an appreciable
> IQ would choose operations work, anyway. These people do not see
> the big picture and I doubt know much more than turning on their
> PC's. I would challenge auditors to look at every layer of C's operations
> to see how deep these control issues go.
>
> 8. C split into 3 companies on paper as a magic trick to fool investors
> into thinking they're profitable. Why not spin off the unprofitable
> divisions. Stop these stupid juvenile sleight of hand games that
> these criminals are playing with taxpayer money.
>
> 9. Citi has been shipping Jobs to India, US jobs...US taxpayer money
> should not support these endeavors, and should pull the TARP money
> back, if necessary.
>
> So, can't you find a decent, profitable bank, and not this shell
> game? C needs to be broken up, and its assets sold off to better
> run firms.

Another Citigroup Scandal: Business as Usual for Wall Street

Get a life!

What's Citi Doing to Pandit?

Pandit has done a great job under the circumstances and will likely allow Citigroup to get back to profitability soon. Stock will be at a double at least once this calendar year. What have you ever run that allows you to criticize?

Industry Observers: Shouldn't Something Finally Change at Citigroup?

You should write an article about how much you like JPM, that would be equally obvious to those who merely parrot what everyone else writes.

Tracking TARP Funds

All the more reason to go long C and BAC!! What will you write when the taxpayer gets a return on their shares of these two companies?

Citigroup Files to Increase Shares Outstanding to 60 Billion

Dilution is a function of value that the new shares are offered not the number of shares. You might want to learn a little more about the subject before you write on the subject!

GM: Are We in Looneyland?

This really is the land of opportunity when you can make 15% in a day on a bankrupt company!

Wells Fargo Is Broke: Poor Forecasting Slays Another Giant

You missed the boat on your stress test article as well....You do take a nice picture though.