Banking & Finance

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

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.