May 4, 2011 | In: Financial
Is CITI Losing Its Attractiveness?
I always believed in C (Citigroup Inc.). It is one of those rare stocks that I believe will rebound extraordinarily when they do rebound, and I always made money on this stock, regardless of the price at which I bought it.
Let’s examine the performance of C for the last several months (image courtesy of Google finance):
The stock has since (the peak) dropped 12%, and it seems that it can’t get out of the bearish hell. It seems that investors lost their appetite for C. The stock will even be less attractive in a few days, when the reverse split of 1:10 will take place (reverse splits always signal that the stock will go down in price). At the current price, the stock will be around $45 after the reverse split, which will heavily reduce the volume, and will probably kick out the small investors who buy a few thousand shares and then sell them in a few days.
I think on the short term, C will suffer a bit, but will still probably close the year at around $60 (of course, after the reverse split).