Tuesday, October 16, 2012

Investopedia: There Are Always Clouds In Citigroup's Sky

It's probably too much to hope that money center banks like Bank Of America (NYSE:BAC) or Citigroup (NYSE:C) will ever report completely clean quarters (as there are just too many moving parts), but it seems like it's always something with Citi. While third quarter results looked OK on the surface, there still isn't much sustainable momentum behind the numbers and it's hard to feel great about the company with now-former CEO Vikram Pandit stepping down.

One quarter ago, I did think that Citi was a good pick for aggressive investors, and the stock has climbed nearly 40% since then. Given where valuation is now relative to others such as JPMorgan (NYSE:JPM), Wells Fargo (NYSE:WFC) and U.S. Bancorp (NYSE:USB), the potential disruptions from the leadership transition and the underlying momentum, I'd be less inclined to buy this stock over some of those other high-quality banks.

Please read the full article here:
http://www.investopedia.com/stock-analysis/2012/There-Are-Always-Clouds-In-Citigroups-Sky-C-BAC-JPM-WFC1016.aspx

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