Saturday, February 26, 2011

C - Citigroup

Regarding citigroup, I think it is time to follow this stock. The US banks looks atractive again, and in citigroup I have noticed some interesting things. In this blog I do not make any fundamental analysis (I reserve it to me), but I can tell you some. For example, it has returned to profitability in 2010, with net income of $10.6 billion, versus a loss of $1.6 billion in 2009. Also, it hasmade good progress in improving credit quality. The U.S. government canceled $1.8 billion of its perpetual preferred shares in conjunction with the end of the loss-sharing agreement, but still holds $5.3 billion of preferred shares, which it is selling off gradually. The EPS is at 0,35 per share, not bad. I think that as a result of capital raising activities in the last two years, this company is better prepared than before to withstand further write-downs of their loan and securities portfolios.
Although all this, it has been downgraded to "neutral" from "buy" by Goldman Sachs.
The charts: in the weekly chart, I am following the 55 weekly exponential moving average. Key support.
It is going to break this pattern. I would bet that upward, but who knows?

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