Friday, April 18, 2008


How could the Market be "Bullish on Citigroup Despite Big Quarterly Loss."?? They posted a second straight quarterly loss totaling nearly $15-Billion so far. They have also suffered more than $46 billion in "write-downs" since the middle of 2007. They slashed their dividend and raised more than $30 billion in debt, I mean, "capital." Book value per share (assets minus liabilities) fell to $20.73 from $22.74 at year end. Return on equity was negative 18.6 percent! in the quarter. And yet, the "Market" is bullish on Citigroup!? shmucks
Here's a link to a more honest outlook on what the "markets" should keep in mind.


Trader M.D. said...

It's not about the news or the fundamentals (big writedowns, etc), its the reaction.

fufufnik said...

trader m.d.,
You're absolutely right. It still defies logic (kinda like sub-prime mortgages). And it's interesting to think what the "reaction" will be further down the road. cheers!


themicrokid said...

I think it is a multi part answer:
1) Don't fight the fed.
2) Citi threw the kitchen sink in their losses.
3) Don't fight the fed.

I stated on 2/26 the bottom was in, but retests were possible. I still think it.

Enjoyed your blog.