When will Citigroup get it right? Wednesday, October 31, 2007
Posted by ei-forum in US Traded Stocks.trackback
Citigroup (C) has been testing investor patience for a number of years and Mr. Prince is definitely running out of time. But how long will this last? How long will investors have to wait until the stock price reflects the true value of this company? Naturally, we always have to keep in mind that, as Keynes said: “Markets can remain irrational longer than you can remain solvent.” However, we are confident that the long-term investor will be rewarded.
Let’s look at some of the numbers for Citi:
- P/E Ratio = 10.05
- Est. Div. Yield Curr. Yr. = 5.1%
- Est Div. Yield Next Yr. = 5.5%
- Price/Intrinsic Value = 1.00
- Price/Book = 1.73
- Return on Equity = 18.4%
- Net Margin = 24.03%
- Operating Margin = 33.07%
We are not saying that everything is going fine but Citigroup is a cash machine that is currently paying a pretty good dividend. People tend to focus on the problem areas but also forget that Citi has a very diversified portfolio of activities and the management overhaul will start to bear results. A long-term buyer of this stock should be aiming to see it back in the mid 50s within the next 24 months.
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Starting to look better ..selling seems to look alittle better ..wil nible
a littlie …Lenny
Nice post.
I’m holding but this article is brutal:
http://blogs.wsj.com/marketbeat/2007/11/01/citigroup-will-work-for-food/?mod=yahoo_hs
You all do not get it…Bob Rubin and Chuck Prince have done this before…driven the stock price down gotten stock options at the lower price from the Board of Directors…
This is their second attempt at lining their own pockets and our BOD is helping them do it…too bad they do not have the backbone to issue stock options for them at $55.00 a share…
More bad news today… it’s a shame the they are incapable of turning this company around…. time will tell!