Citigroup - 4.2% yield, 2x book, 18% ROE - - - I think it's a good deal at $51?

Question

BUT the rumors are that it is looking to acquire something - no specific deal on the table just an open eye, but if they did buy something it'd be big, I think it would be in New England since they've been putting up branches there, and they would pay a premium for the assets so the stock price may fall - - so I'd buy some now and some later.

And YES this IS political.

All you idiot Libs bitching about "two Americas" act as if there weren't a freakin' superhighway from the one America to the other - there is, it's called work, save, research and invest.

And here I'm giving you a freebie - ANOTHER freebie. I TOLD you NYX was a buy in the high 80s and it's at 93. I TOLD you drillers were cheap. They're all up. Now I'm telling you that at 51 Citigroup is worth owning even if it sits there because it has a 4.2% dividend which is taxed only at 15%.

It's also recession proof - if the economy dips, the Fed will cut rates, boosting banks' margins.

It IS finance - but one side in the political debate thinks "finance" is a big conspiracy among the already rich to keep everyone else poor.

I own NO Citigroup stock and am still deciding myself - I sunk a lot of money into NYX a week ago and it is already up big (I bought at $84.49 thank you).

Enron???? OK that was an ENERGY TRADER. Citigroup is a BANK.

And tax free bonds doing better than C? Let's see that would be 3.570%.... Well, OK but the asset itself will just sit there while the C stock has more upside than downside - it might sit there for a while and it's not going to skyrocket as it's already priced at a little over 2X book, but with ROE over 18% it'll go up over time, while the muni could go up only by a little if interest rates fall. And yes, C is recession proof - if the Fed cuts short term rates, that means deposit rates fall, that means banks' interest margins will grow.

Anyone else notice the overlap between people who don't grasp this and people who think it's all a big ponzi scheme?

Answer 1

This is political?

It sounds like finance to me.

Answer 2

Tell that to the folks invested in Enron. Recession proof stock, that's a good one. It appears we may be on the verge of an adjustment I believe it's called. As the housing market and mortgage lenders drop, watch the rest of the market follow.

Answer 3

Yeah right. I will skip it. Tax free bonds have performed better than their stock. You probably bought when it was up going up in December and now you are hoping to get back some of the money you lost.

http://finance.yahoo.com/q/bc?s=C&t=1y&l=on&z=m&q=l&c=

Answer 4

Thanks for the tip. I will take some of my hard earned cash and invest it to better MY life.
Would you consider a butterfly spread with options? Seems to be a good way to take advantage of a major move in either direction given the right stops in place.

Or maybe I'll just do as most do here and buy some ring tones. LOL

Answer 5

go ahead and buy your stocks ....hahaha

Answer 6

Do you have a question? If not....