Recent Posts

Archive

Tags

No tags yet.

Citigroup: The Pain Before The Gain

Summary Points:

*The recent news - an anticipated $20B non-cash charge and expectations for a decline in quarterly trading revenue - has caused downward pressure for C shares.

*This bank has reported impressive operating results so far in 2017 and its book value is up mid-single digits YoY.

*C shares are a long-term buy at today's price.

Citigroup ($C) is a bank that has greatly benefited from a positive change in investor sentiment, as shown by the fact that C shares have greatly outperformed the broader market over the last year. In my opinion, investors with a long-term perspective should seriously consider using any sizable pullback caused by the recent noise as an opportunity to add to their long position because the bank's story remains intact.

Read more here.

©2020 W.G. INVESTMENT RESEARCH LLC.