Quote:
Originally Posted by Fredledingue
Yep, I was wrong.
In fact the PE reported by Y! Finance refers to result dating fro june 2007. I don't know why because they posted more recent results one month ago. Y!Finance is far from reliable it seems.
Nevertheless, I think the bottom is near with this bank or at least, there won't be spectacular falls anymore.
Not a good time to buy. I'd wait another 6 months for that.
I take the analyst estimate of a 15 Billions potential loss with a grain of salt.
C stated that 11 was a maximum.
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If you wait another 6 months, you wouldn't make a huge gain. But you are still a bit save and that makes it a conservative investment.
C at $33 is just a great bargain. Assume that C takes another 15 billion write off, the valuation is still above $40. So there is about 20% margin of safety. For a behemoth like C, it is surprising anyone is foolish enough to clean their C portfolio.
It would take just 3 years for it to reach their "average" price, above $50. If you add with dividend ( Iam sure C would not cut its dividend, they want to preserve the good dividend history), the return is above 15% compounded annually.
The only bad fact is that the management does not look to be kind to shareholders. Compensation is high, Turnover is increasing. It shows the company lacking respect and direction.