A lot of Sovereign wealth funds have invested in Citi around $40 per share, and a whole bunch of impatient investors have gotten long at various levels on the way down. But we identified long back that a reasonable level to buy this banking giant will be below $11.80, perhaps down till $10.40. Yesterday the stock closed at $11.73. There is no point in doing all this analysis if we don’t act when the targets are reached. So let us start buying in stages from here. Remember that this is a medium-term investment, not a one-night stand! We are seeking to DOUBLE our money, and that takes time. Also, we should only commit an amount that will not bother us in the night should the stock price drop to say $8. (anything is possible these days, but I dont think they will allow any big bank to go bankrupt now). So let us join the sheiks, princes, kings, monarchs and sundry billionaires and throw inour weight behind Citi.
See how the price has come down like I suggested a few days back.