Saturday, March 29, 2014


Because of it's rejection of their capital plan, Citi was refused it's request to  raise dividends and share buyback. They do have a month to resubmit the plan and go through the stress tests again, but I believe the chance of them fixing their internal issues to comply with the Fed will take longer.

Many believe this has pushed back their return of capital to shareholders into 2015.  This has led to four firms to downgrade the stock to market-perform, cutting their price targets to $52.

 For this reason, I have decided we should cut to a half position.  We should be able to get out right around our buy-in price. I do believe it's a good idea to keep a half position because of other possible positive catalysts like their upcoming earnings on April 14th, and good vibes from the banking industry overall.

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