After digesting the earnings miss for C, I’ve decided to take may small position in ‘C’ off the table.
I sold today at 12:04 for $28.7401 per share. That closes out ny 11/21/2011 purchase at $24.99 per share resulting in a nice 15% two month profit.
A new problem on the horizon was brought to light by Moodys today naming Citigroup the most exposed to the EU GIIPS with a net amount of $16.3.
Additionally, Marketwatch commentator David Weidner had this to say:
“Investors can be forgiven for seeing the glass as half-empty,” writes David Weidner on MarketWatch, with Q4 results “a reality check that showed the bank is still unable to meet even the most restrained Wall Street analysts’ expectations.”
More sell supporting news:
-Q4 release of loan loss reserves was $1.47B against net income of $1.17B, meaning the company lost $0.05/share without the release.
-For all of 2011, net income was $11.3B, +6% from $10.6B in 2010. Full year revenue was $78.4B, down from $86.6B in 2010 as Citi Holdings shed $90B in assets. Net credit losses in 2011 were $20B against $30.9B in 2010.
I’ll be holding off on buying back Citigroup until at least a review on the next quarterly financials. Likely C is dead money for 2012. Glad I’m out.