Bill Ackerman announced last week that his hedge fund, Pershing Square Capital Management has acquired about 150 millions shares of Citigroup over the past few weeks. I am now announcing that this is another great buying opportunity for Citigroup (NYSE:C). Main reasons are that supply begets demand; the government was easily able to dump off their shares and reload. This shows that there are many buyers interested in Citi out there. Bill Ackerman was the first but many big institutions are starting to catch on. This stock is well behind the rest of the banks due to the large government sell-off the past few weeks. This might have held the stock back for a little bit but long-term it will only strengthen Citi’s position. What I believe you should do is buy Citi and hold it for 2 years not 2 months. Just wait this stock will begin to soar once the government sells off most of its shares and gets to around 10% ownership range. Once this happens big institutions will jump on the stock and jump on big, buying not millions of shares but billions. Citi use to be a $50 stock, I am not saying it will go back to that level but I definitely believe it can get back to the $10 price range. They have a market cap of $80 billion, daily trading volume of 3 billion shares, have made billions of dollars in revenue the past 5 years, and have enough shares to give everyone in the world 4 each, 22.86 billion shares to be exact. Citi has restructured it business successfully which in the end will lead to a more stable revenue stream. Overall Citi is an attractive investment that everyone should capitalize on, make sure not to miss out.
Read the full article at: stocksonwallstreet.net/2010/06/02/citigr.../
Disclosure: "Long C"