C Citigroup: Will it survive?

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	David Sachdev
	Washington, DC User since Dec 2009	37
Covers MCP SINA GLUU SODA BAC AAPL TIBX and 3 other stocks - Go to Blog
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Will it survive?

I think that Citibank will make its way back to a $5 stock before the year is out. I do realize that there is a large short position here, and part of what I'm relying on is a short squeeze. And now that there are talks about the government holding out its sale of stock post earnings in order to get a better price, I expect to see many of these short sellers closing out their position prior to earnings.

In reality, I expect to see Citibank above 5 well before next January, but I've got an open call positon for a strike of 2.5/share for Jan 2011. I don't think I'm really interested in owning this company, but I will trade it.

I added to my option position just in the last few days, and my cumulative holdings are up 32% at the moment. And I guess I lie, I do have some long positions in my IRA, which I opened at $5/share and added to in the$3.35 range.

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What People Are Saying...

Mike Barkett agreed at 3/26/10 4:13 PM Price action was $4.28 +0.01 (+0.2%)

all good points, and maybe a simpler perspective is, what's the alternative? Headed downard toward $0? Who really thinks Citi hasn't seen the worst of its woes, so why would it head toward oblivion, unless the overall market collapses. The way to go is UP.

Mike Barkett said at 3/29/10 9:52 AM Price action was $4.36 +0.05 (+1.1%)

just a quick note on your score, David. To avoid ridiculous extrapolations of single-day gains/losses, every coverage is only scored after 5% of its timeframe has elapsed, or 10 days, whichever comes first. So if your coverages keep doing well, your score will jump up quite a bit within a week or so.

Josh Warner-Burke said at 3/29/10 10:26 AM Price action was $4.23 -0.08 (-1.9%)

The government's plans to sell its stake in Citi -- a negative for the stock or a positive? http://blogs.wsj.com/marketbeat/2010/03/29/government-officially-announces-...

I would tend to say positive, in that all these banks have been rushing to remove the association of the government bailouts. If the government can sell its stake at a profit, then that smooths over some of Citi's past indiscretions. Just a little.

David Sachdev said at 4/18/10 11:06 PM Price action was $4.56 -0.25 (-5.2%)

I added to my C position on Friday...