I’m either stupid or a glutton for punishment but I bought 10 additional shares of Citigroup (C) yesterday for my Roth IRA account. I figured that C was at its bottom and wouldn’t go lower than $20 because my recent modeling is showing a strong pull toward a higher price, but it didn’t listen to me! I went long at $20.15 and it closed at $19.60. Sheesh!
I’m still long C in my long term holdings and loving hating it! :) For what its worth, here are some price targets for Citigroup (C) I developed using Riskamp.
Upside Price Targets: $22, $27
Downside Price Targets: $17, $12
OMG!!!
WTF???
Cordially,
-Digital Dude-
DD: Yeah I know, I’m a glutton for punishment.
I think your buy at 20.15 is great. I too bought C recently…although I got in at 20.36. I think there is strong support around the 19.50 area. We had above average volume today…90mill instead of average 60mill. I think the banking industry will turn around Q1 of 2009. I know there are more write offs to come, but looking at the long term, citi is still the largest bank in the world. Their market cap has been reduced by over 60% in less then 1 year. I think financials will rebound and I expect we’ll see $25-28/share by years end.
-Matt
Matt: I hope the C rebounds to $44 at least, this way I’d be close to break even. :)
Your break even is $44…ouch. I could see $44 in 2 years time. In fact it may not take that long. I think that once the write offs are done and we start to see a positive eps, money will slowing trickle back into financials.
Matt: Agreed. Time heals all wounds and most stupid trades. :)
Funny you mention Citi…
That has been one of my more profitable. I bought in at 19.70, sold at 25.80 and now bought in again…
I will be adding, but not quite yet..
CG: I still need to post a rebuttal of your rebuttal from my USD post! :)
Glad to hear that someone is making money on C, :)