October 25, 2010 | In: Financial

Citigroup Is Set to Jump Today

C closed Friday at $4.11, it is currently trading at $4.24 in the pre-market, up 3%. Why is that? Apparently investors are sensing that the Citigroup is one of the very few financial institutions that is shielded by the treasury, for reasons that may only be known to God. Citigroup is an extremely undervalued stock, and I believe it will be trading at 3 times the current amount by the end of next year. Many prominent investors have a lot of money at stake in this institution, and it is currently the 3rd largest bank in the US, with just over $2 trillion in consolidated assets.

C is one of the very few stocks that I feel I must always have, and if I sell it, I tend to buy it again in a day or two at a lower price (sometimes the same day), because I always have the feeling that this stock will always go up in the long term. Citi was resilient when all bank stocks, especially BAC, were down. If you have some money that you want to invest, stockpiling C is not a bad idea at all…

Let’s see what will be the value of the stock by the end of the day today. I hope it closes above the $4.30 resistance, and it holds for the week. This would be very bullish.

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