Friday, April 18, 2008

Citigroup (NYSE:C): Short?

Talking to a smart trader (former heavy hitter at a major firm) who says he's looking to short Citigroup (NYSE:C) on today's gap-up. According to him the write downs are more real than people suspect, nothing to be recaptured. Lots of headline risk and a definite recap has to get done, they're going out the well again very late, will affect pricing.

Morgan Stanley is also out on Citi this morning saying their forward view is more challenging
in light of credit deterioration. Citi’s miss vs. consensus today had more to do with rising credit costs and reserve build than the market related losses. While Citi was $3B higher than their estimate, the Street was building in significantly higher write-downs. This is a negative for
the stock as credit deterioration will be longer tailed than market losses. EPS estimates likely to come down.

Notablecalls: It prolly makes some sense to scale into a short position in C this AM. I've already started with a small position around $26.25.


Vermont Trader said...

nice, watch out for the pump into options expiration.

descobertacientificadaenergiadinamica said...

Olá Srs. Diretores, eu enho 2projtos para lançar na internet que serão de grande audiencia/acessos. Um é a maca BAMCOS e o outro é a Descoberta cientifica da energia dinamica, eu faço parceria nos lucros. Obrigado

poeticnerd said...

nice one again NC..back in form