Citigroup: Deep Value Play Trading Below Book?
📉 Citigroup is highlighted for trading at a significant discount, with a Price-to-Book (P/B) value of approximately 0.55x, suggesting potential undervaluation.
🏦 For financial institutions like banks and insurers, tangible book value is presented as a more reliable valuation metric than standard book value, as assets are closer to their stated cash value.
🔑 The investment thesis hinges on identifying management actions (catalysts) like aggressive share buybacks or strategic divestitures that could help close the gap between market price and book value.
Citigroup Crash: Why Selling at a Loss Was the Right Move
📉 Citigroup was sold after breaking its bullish channel structure, triggering a predefined sell signal.
💸 The position was closed at a loss (estimated -10% to -15%), demonstrating the importance of accepting losses in trading.
🛡️ Selling promptly avoided a much larger potential loss, as the stock continued to fall significantly (-20% to -25%) shortly after the exit.
Citigroup: Market Correction Creates Buying Opportunities
📉 The recent market pullback has made valuations more rational, even for the 'Magnificent Seven' tech stocks.
⚖️ Citigroup believes the risk-reward balance for stocks has shifted positively.
🎯 The bank maintains a 6,500 year-end target for the S&P 500, suggesting significant upside potential.
Citigroup’s Post-2008 Performance: A Tech Underperformer?
🏦 Citigroup, along with other banks like Bank of America, did not perform as well as technology stocks after the 2008 financial crisis.
🔄 This highlights a broader trend where technology companies have significantly outperformed traditional financial institutions in recent years.
Citigroup: Banking Giant Primed for a Turnaround?
🏦 Citigroup is considered a laggard among the U.S. banking giants.
📈 The company is undergoing a transformation led by CEO Jane Fraser, focusing on more profitable divisions.
✅ Citigroup is a leader in international payments and has a strong investment banking and credit card business.
🚀 There is potential for the market to reward Citigroup with a valuation more in line with its size and global position if it increases its profitability.
