|5 Year chart of Citigroup (symbol C, NYSE) |
Citigroup has projected 2011 earnings per share of $4.08 and projected 2012 earnings per share of $4.45. 3rd quarter GAP earnings were up 75.71% this year's quarter over last year's quarter. Total Net Income continues to rise each quarter over the next. They are getting their fiscal house in order and it will be corrected over time. Sales growth will be a rough road to hoe for a while with a company that has such large revenues to begin with.
Yes , you could play it safe in the treacherous waters of this market and buy a JP Morgan or Wells Fargo like some well noted investors have, and they are very good businesses, but their stocks are not trading at 49% off of their 52 week high price like Citi is here. This is a longer term trade that you will buy and put away awhile and check the price in about 6 months. The return will come over time, a rare thought in these markets.
Here is a New York Times link on the stock: http://topics.nytimes.com/top/news/business/companies/citigroup_inc/index.html
You may even save a few bucks if you buy it next week with Congress's "Super" Committee in deadlock and another possible US credit downgrade coming. Time for the US Govt. to finally get their financial house in order.