Citigroup's Ongoing Exits... Still Room To Double (C)

Banking, finance, and taxes

Published: July 7, 2010 4:07 pm

Last Updated: April 27, 2020 7:09 pm

Citigroup, Inc. (NYSE: C) had a surprisingly small reaction today considering that when banks rise it tends to rise even more. Thomson Reuters, via PEHub, reported today that Citi has agreed to sell a portfolio of private equity interests for more than $900 million.

The report cited “multiple sources” calling Lexington Partners the buyer. We are looking beyond a single sale issue here.

There is something far more important here at stake. It is not just that we have said Citi could still see shares double. It is not even that hedge fund great Bill Ackman mirrored our call.

Citi is still paring its operations. It will probably take years for this to happen. It should as well, when you consider that selling off assets should be done through time for the best prices rather than a series of ongoing fire-sales at distressed prices.

Citi’s unofficial closing bell price was up 2.90% at $3.90. The volume was light at “only” 460 million shares.

JON C. OGG

ALERT: Take This Retirement Quiz Now (Sponsored)

Take the quiz below to get matched with a financial advisor today.

Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.

Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future

Take the retirement quiz right here.