Citigroup’s has had its share of negative issues such as 1) getting tagged by Japan and European regulators for lax internal trading controls 2) getting tagged by Elliott Spitzer for illegal mutual fund trading and 3) having the FED tell C to clean up its risk management practices in the US before doing larger mergers. Add to that the flattening yield curve which is generally bad for bank margins and you have a recipe for an underperforming stocks.
However, I think these issues are already reflected in the price of the stock. C is trading at less than 11x forward earnings and close to 2x book value. That’s cheap for most banks and for C in particular. I particularly like the 4% dividend yield. That’s as high as its ever been for C and its almost 2x higher than the yield of the S&P 500.
C is not a new idea. Super-dooper value managers Bill Nygen and Bill Miller have both expressed an interest in the stock at higher levels.
At these prices, the stock looks extremely enticing. The stock is trading at a below average multiple of trailing earnings, at a below average multiple of price to book and at an all time high dividend yield
Source: Baseline
You can also make a case that the long term chart is carving out a giant cup & handle pattern.
All in all, it makes for an interesting bet for value oriented investors.
This past October we had Ken Hamm and team speak at our All Pastor’s Conference in Acme (Traverce City Resort), Mi. The attendees were rirqeued to read “Already Gone” before the conference. We as a District are promoting AiG materials to our congregations and schools in the hope of keeping our younger generation fully engaged in their faith and church as they mature. I was wondering if I spearhead a fund raising program in the Michigan District and we eventually reach at least $5000 by June 2014, can we get a beam donor designation?