How many of you have stepped up to the plate in recent trading sessions and bought shares of Citigroup?
You say you don't follow the crowd. You say that your favorite quotation is Nathan Rothschild's famous phrase that the time to buy is when the blood is running in the streets.
Well, now may be just such a time.
At least that is what I conclude by reviewing the advice of several of the contrarian newsletters that I monitor.
The blood of Citigroup Inc. (C:
Citigroup, Inc
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Last: 11.49-1.14-9.01%4:00pm 11/06/2008Delayed quote data
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C 11.49, -1.14, -9.0%) has definitely been running on Wall Street over the past few days. A brokerage downgrade of the company was blamed for the 362-point plunge in the Dow Jones Industrial Average ($INDU:
Dow Jones Industrial Average
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Last: 8,695.79-443.48-4.85%4:03pm 11/06/2008Delayed quote data
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$INDU 8,695.79, -443.48, -4.8%) last Thursday, for example. And the stock fell another 5% on Monday, following the resignation over the weekend by CEO Chuck Prince and the company's announcement that it would take at least $8 billion in new mortgage debt-related write-downs. ( Read full story.)
One newsletter editor who definitely is buying in the wake of Citigroup's blood running in the streets is John Dessauer, editor of the Investor's World newsletter. In his most recent hotline, written last Friday night, Dessauer had this to say about the company: "The fact is that Citigroup is one of the most profitable companies in the world, earning $21.2 billion last yea r... Earnings estimates for 2008 have been reduced but are still ... well above (what is) needed to restore capital ratios and eliminate speculation about a dividend cut ... Take advantage of the negative speculation. Citigroup is a Buy."
Kelley Wright, editor of Investment Quality Trends, agrees. In his most recent issue, he draws an analogy between Citigroup's current travails and those that plagued Altria Group (formerly Philip Morris) earlier this decade. Wright reminds us that, in 2003, Altria Group Inc. (MO:
altria group inc com
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MO 17.65, -0.58, -3.2%) "was deeply undervalued ... because of a $10 billion judgment against the company. The judgment, which could have effectively put the company into bankruptcy, was eventually overturned but not before the stock slid to $28 a share with a dividend yield of 10%! We initiated our largest position ever in Altria and today the stock trades in excess of $73 with a $3 dividend and a current yield of over 4.0%."
Wright acknowledges that the crisis in which Citigroup currently finds itself might prove to be different than the one from which Altria was able to recover. After all, he points out, "the Wall of Worry is a constant Wall Street companion." But, like previous crises, Wright is betting that, "this too shall pass."
These two editors turn out to be in good company in endorsing Citigroup's prospects. Among the investment newsletters monitored by the Hulbert Financial Digest that have beaten a buy-and-hold in the stock market over the last decade on a risk-adjusted basis, Citigroup is tied for 14th most popular
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Thursday, November 6, 2008
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WELCOME TO STOCKMARKETSHORTS.NET
Here you will find the most information available on Stock Market Shorts and Short Trading Stocks. This site will concentrate on how you can profit in a down market. How you can profit as the market goes down. The site will focus on Short Selling ideas and how to use other investments to make money as the market goes down.
Please remember this in not intended as advice for your individual situation. Please consult your own financial advisor. This site's purpose is to create a forum where ideas are freely exchanged so we can all profit from our mutual knowledge and insights.
Good Luck!
Todd
Please remember this in not intended as advice for your individual situation. Please consult your own financial advisor. This site's purpose is to create a forum where ideas are freely exchanged so we can all profit from our mutual knowledge and insights.
Good Luck!
Todd
NOT BUY AND HOLD... SHORT AND BOLD
YOU HAVE FOUND IT. The HOLY GRAIL of Investing and Speculation. Here you will get unadulterized, unpaid, and unsolicited advice. This is how it works. I will provide my best guess on speculations of the day, week or other relevent period. I think you benefit from my insight and we will include information from other sites and sources that will help you trade better.
So, we will be looking for opportunities for you to make a lot of money using the short side of the market. That is making money on STOCKS GOING DOWN. Keep in mind--you make money by buying a stock at 10 and selling it at 20---BUT IT DOESNT MATTER WHAT ORDER YOU DO IT IN. So, I will attempt to provide you the best information on this site as I see it. So whether its a short position or a long you seek---I will attempt to pass on my best ideas here. I hope you will repond back with your best ideas and we all will have a useful forum.
SMALL STOCK INFORMATION: Click Here!
CURRENCY TRADING: Click Here!
COMPUTERIZED CURRENCY TRADING: Click Here!
DAY TRADER CLUB: Click Here!
These are a few of the current resources that are worth checking out. I will add more in the future. As always, I also recommend http://google.com/finance for quick info on stocks and "decent" charts and chats.
GOOD LUCK AND GOOD HUNTING
So, we will be looking for opportunities for you to make a lot of money using the short side of the market. That is making money on STOCKS GOING DOWN. Keep in mind--you make money by buying a stock at 10 and selling it at 20---BUT IT DOESNT MATTER WHAT ORDER YOU DO IT IN. So, I will attempt to provide you the best information on this site as I see it. So whether its a short position or a long you seek---I will attempt to pass on my best ideas here. I hope you will repond back with your best ideas and we all will have a useful forum.
SMALL STOCK INFORMATION: Click Here!
CURRENCY TRADING: Click Here!
COMPUTERIZED CURRENCY TRADING: Click Here!
DAY TRADER CLUB: Click Here!
These are a few of the current resources that are worth checking out. I will add more in the future. As always, I also recommend http://google.com/finance for quick info on stocks and "decent" charts and chats.
GOOD LUCK AND GOOD HUNTING
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