Shares of Citigroup (NYSE: C) have done what some would have thought impossible. Last year that $40.00 floor was the imaginary hurdle, then $30.00 became the last hurdle. But today the stock managed to break the $20.00 barrier and is currently trading at $19.85.
We recently noted that Citigroup could see $16.00 or $15.00in the Spring after reports of it needing more money. Imagine how badthis would be in one day if the banks and guarantors all came cleanwith their news at once.
Oppenheimer’s Meredith Whitney made the most bearish public call on Wall Street in 2007, which ultimately brought her mush fire before praise. She even recently noted the chance of it seeing $15.00 on write-down exposure. Meanwhile, long standing banking analyst and market pundit Dick Bove of Punk Ziegel has started defending shares of Citi in recent weeks to months thinking enough is enough. So far she is winning, but who knows…. They both may end up being right when it is all said and done.
Jon C. Ogg
March 10, 2008