Citigroup

[CaptTurbo]

I dont know if I lost my mind or what but I think one living right now today and is under 40 could retire fairly wealthy by investing in Citigroup. Im talking 75%+ of your portfolio. I know, I know dont put your eggs all in one basket but....

The government has about 2 billion more shares to sell. They plan on keeping 5.7 billion shares long term. C already bought 20% of the government shares back themselves.

Eventually the government will have very few shares and stop the selling pressure and Citigroup will start buying shares to start reversing the shares dilution.

Eventually the dividend will come back as well. With as many shares there are now 25-30/share is not feasible but after buybacks and an eventually improved economy how can you go wrong.

The government already proved it wouldnt let C go bankrupt. Regardless the worst is over for C. Its 4 bucks a share. By 2012/2013 (even earlier) it should easily be 8-13/share. 100% profit.

I only have a few thousand shares but I am treating it as my backup retirement plan since I cant really count on SS or state government retirement.

Thoughts?

 

[MadCardDisease]

I agree. I own shares in Citigroup and think it will bounce back strongly in the next couple of years.

 

[CaptTurbo]

Berkowitz just bought 300 million for Faireholm Fund.

http://www.morningstar.com/cover/videocenter.aspx?id=324901

 

[CaptTurbo]

Still buying. I may start springling some LYG and BAC in here as well.

 

[CaptTurbo]

Government is out!

Dividend to resume after buybacks. Solid plan!

I really wish I had some free cash to buy more.

 

[jf-08]

Still buying. I may start springling some LYG and BAC in here as well.

LYG still struggling:

http://www.fool.com/investing/international/2010/12/19/lloyds-suffers-the-bad-luck-of-the-irish.aspx

 

[CaptTurbo]

Yeah.

Id say my exposure in banking is:
Citi 70% Been buying every month. Avg Price 3.77
BAC 20% Just bought lately in the 11's.
LYG 10% Down on this pretty big with an avg price of 7.50

 

[CtCardinals78]

I own Citigroup as well for the same reason. If Citi goes bankrupt this whole economy is in trouble. It should also rebound quite nicely. At $5 a share, it's one of the safer investments IMO.

 

[conraddobler]

No it is NOT safe IMO.

It may payoff but it's the ultimate suckers bet on that one.

I'd say it's IMO insolvent right now, the only reason anyone would ever buy it is they think there's no way it could go down the tubes.

That's probably largely true, but that dosen't mean the common wouldn't get wiped off the face of the earth and zero'ed.

The bank bailouts have largely played out in terms of blank checks to banks, ie we will save the shell of them, the checks will cash, the atm's will work but investors will now be asked to take losses, you really have to study how a bank can be saved yet the common stock holders can be wiped out before you bet much on that one.

 

[conraddobler]

Update:

http://www.npr.org/templates/story/story.php?storyId=133035002

The new rules just took effect.

Investors can now lose money in a TBTF bank, it can be carved up and sold off, run while it's deemed necessary.