Citigroup (NYSE:C) has probably been covered to death, but the 5% drop and the flirt with $30.00 puts this one at a severe risk today. The last time shares were down here right above $30.00 was in the first half of 2003. The stock keeps breaching support levels.
What is still unresolved is the fact that there is no CEO heir apparent. The fact that management didn’t plan ahead after firing Chuck Prince 9 to 10 months late is poor.
Now that CNBC has reported "MASSIVE LAYOFFS COMING" you know morale inside Citigroup is probably running quite low. And morale was already scathed.
Shares hit $30.03 earlier today. It is safe to assume that the $30.00 handle will be watched as closely by financial and stock traders as $100 oil is being watched for by oil traders.
Financials are still not coming clean yet about part of their net debt and leverage exposure. Maybe they can’t. Or maybe they don’t want you to think they are all on the cusp if they came out with the entire truth.
The Fed is injecting liquidity again, partially validating the fears that the credit markets are getting worse. Maybe the markets would prefer financial socialism.
Jon C. Ogg
November 26, 2007
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