Monday, March 8, 2010

Goldman and Citigroup to push to higher stock price?

Goldman Sachs (US:GS) was reported to push through $200. I do agree with it. Goldman is a fundamentally sound company and has earnings of $22 per share in 2009. Multiplying that EPS by a P/E between 10 and 12, the share price should be between $220 and $262. Goldman Sachs is a steal at current P/E of only 7.73.

What about Citigroup?

Citigroup (US:C) is currently strong and healthier after restructuring by selling off assets that are not core to Citi. I believe that C will turn into black when they report their 1Q 2010 results on 19 April 2010, 8am ET.
Another reason to buy C is because George Soros, one of the investment legends, has buy in C shares in the last quarter where the price was between $3.20 to $3.40. I think that C will breakthrough $7 buy end of this year.

Quote from CNBC (Mad Money)

He praised the company for selling off its unessential divisions at good prices and focusing on the products that work. Cramer also commended CEO Vikram Pandit for turning the company around, something he gets little credit for. In fact, Cramer thinks Citi [C 3.56 0.06 (+1.71%) ] will reach $12 in 2012 largely because he knows Pandit is there steering the ship.

“Now that we know Pandit is here to stay,” Cramer said, “you want to buy all the Citigroup you can when the government starts selling its huge stake.”

“This may be the last great bargain left in the banking business on Wall Street,” he said. “Take it.”


About Goldman Sachs
Goldman Sachs Group Inc. (The). The Group's principal activities are to provide global investment banking, asset management and securities services worldwide to diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals. The Group operates in three segments: Investment Banking, Trading and Principal Investments and Asset Management and Securities Services. Investing Banking segment underwrites equity and debt instrument and provides financial advisory services for acquisitions and mergers. Trading and Principal Investments and Asset Management segment facilitates customer transactions and trading of fixed income and equity products, currencies, commodities and derivatives. Asset Management and Securities Services segment provides investment strategies, advice and planning across all major asset classes and provides prime brokerage, financing and securities lending services. The Group operates offices in over 25 countries.

About Citigroup
Citigroup Inc.. The Group's principal activities are to provide financial services through five divisions: Global consumer includes consumer franchise encompassing, banking, lending, credit card services and wealth management services. The Global Cards segment is a global issuer of credit cards through the MasterCard, Visa, Diners Club, Private Label and American Express platforms. The Consumer Banking segment includes a global, full-service consumer franchise delivering a wide array of banking, lending, insurance and investment services . Institutional Clients Group segment provide corporations, governments, institutions and investors. The Global Wealth Management segment is composed of the Smith Barney Private Client businesses and Citigroup Private Bank and Corporate/Other includes net treasury results, unallocated corporate expenses, offsets to certain line-item reclassifications.

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