Citigroup, one of the Big Four Banks in US, along with Bank of America, JP Morgan and WellFargos. C has reached its highest share price at USD55 in 2007 and has also tumbled to < USD1 intraday in March 2009. Just recently, about one month ago, in April 2010, C has gone up to over USD5. Yesterday closing has come down to USD3.73 per share. Investors whom have exposure in 2009 would have made double of we have sold recently.
Billionaire investor George Soros, Soros Fund Management have made a quick double, sold all of the 94.7 million shares of financial services giant Citigroup in Q1 2010, which he had acquired last year, according to a filing with the Securities and Exchange Commission.
Citigroup shares have been volatile, as we know US Government owns more than one quarter of Citigroup, and has been unloading roughly 20% of their stake of approximately 7.7 billion shares in the company since late April. Informed investors expect Citigroup shares to be traded sideways to slightly lower.
Interesting to note that John Paulson (Hedge fund manager, Forbes #45, estimated net worth of USD12 billion as of April 2010, Paulson’s personal take amounted to over $10 million a day, “more than the earnings of J. K. Rowling, Oprah Winfrey and Tiger Woods put together, please refer to my blog about Paulson soon) left unchanged his C stake of 506.7 million shares according to the filling with US Securities and Exchange Commission.
With the announcement of solid results and improvements to their corporate structure and financial resources, accumulation of Citigroup stock, regardless of the volatility, Citigroup should turn out to be a very profitable and solid holding if accumulated properly. With a huge 29 billion shares out, we should expect a share buyback or reverse split plan in the future.
How to buy C? Should we buy shares, options or equity-linked notes? What are the costs and holding period? Please continue to read my coming blog.
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