For long term investors, now is a good time to consider Citigroup
Back around New Year’s, I put up the suggestion that if I was going to pick one stock for long – term capital appreciation it would be the much beleagured Citigroup:
Now by long-term, I’m talking ten years or more: daytraders beware! But over a decade, C might be a true “ten-bagger,” going up 1000%.
Of course, if you want a cheap price rise, you’ll get it much quicker: Citi announced plans for a reverse 1 for 10 stock split, which will float the nominal value up in to the mid $40’s. And to boot, they will soon pay a one-cent dividend — on the inflated shares! Kind of like getting 1/10th of a cent today.
Nevertheless, if you look at the beat-down they have suffered this year, the present level represents a good buying point for the long term investor.
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