Investors are raving about bank stocks surging in the new year of 2011, as these stocks continue their recovery from the devastating setbacks of 2008. Amongst all the popular picks, including Bank of America, Wells Fargo & Company, JPMorgan Chase, etc., the one that grabs my attention the most is Citigroup Inc. (NYSE:C). Citigroup is a precious gem in a chestful of golden coins. Citigroup DOES NOT have the highest potential upside; that is not the reason for its appeal. It does have a great potential upside, but several other bank stocks have an even higher potential of outperforming Citigroup, such as Bank of America. So, why in the world do I place Citigroup atop all the other opportunities in the banking sector? After the 2008 crash, most investors are trying to get back to even and are looking for minimal risk. Citigroup has minimal risk: a decent potential to grow and outperform, and the lowest chance of dropping. Citigroup is a safe investment and has the lowest potential downside - that, my friends, makes it the gem in a chestful of golden coins.
Citigroup took a bigger hit than lots of the other banking corporations and is slower in its recovery. This is because they issued loans to people who could not pay them back, more so than the other banks. Additionally, their investments totally fell apart in 2008. However, they have stellar management. This management is taking action and doing all the right things: eliminating relatively unsuccessful branches, hiring smart investors, staying calm to recover, and taking extra caution when giving loans.
The bank is going to recover, and within a year I predict the stock to reach at least $6/share, from its current 4.7 value. You can even buy it now and still gain a lot. I'm waiting for its price to drop to a reasonable 4.45 or so, maximizing the gain potential. Hold it for longer term, as I plan to do, and you can make a fortune.
Let's begin this new year with hitting this new Bull's Eye!
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