Home » Bear Case Scenario » Citigroup Is there a Bear Case Scenario $C, $JPM, $BAC, $XLF, $WFC, $HSBC, $RY

Citigroup Is there a Bear Case Scenario $C, $JPM, $BAC, $XLF, $WFC, $HSBC, $RY

Citigroup is about to issue earnings results. What more bad news can possibly there be. Regulators failed them on stress tests. This is practically an open book exam so not sure what some of the very senior officers were thinking. Dividend yield is pathetically low. The yield oriented investor does not remember his stock. They are cutting back on expenses and shedding divisions. Exits from units in Pakistan and Paraguay may not be enough.

The stock has dropped to near 52 week lows. For those of you with real memory the stock is trading at around $4.50 pre reverse split. so basically value has not been created.

Citigroup is Global. High dependence on China which is very difficult to forecast. Too bad about those Chinese interns it did sound like a very good idea. Hiring the bosses son or daughter is usually a very good move.

There are still some 250,000 employees under one roof. It’s very difficult to change culture. The biggest problem is to determine which culture you are trying to migrate to.

If I were Citigroup I would blow out anything else that is less than satisfactory and get things behind you.

Buy ugly sell pretty. Deep deep value investors with long-range patience might be putting this one on the radar screen. But we still have to stumble through the next mortgage crisis which increasing interest rates will create.

George Gutowski writes from a caveat emptor perspective.