Assianment 1a

Assianment 1a - debt(The other is HSBC They also give 4.5...

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January 24, 2011 Assignment #1a Name: Drew Harrison Finance 3845 7845 Circle One Degree/Major: Finance Company: Citigroup Inc. Ticker: C Industry: Financials Current Price: 4.89 Market Cap: 142.1B Dividend Yield: 4.5% Tiger Fund Weight: 0 S&P 100 Weight: 1.93% Reason #1 Citi has fairly good numbers and is undervalued. They have a Price/Book of 0.85 which tells me it is an undervalued company. They have $25.98 cash per share as well as total cash of 755B. They do, however, have 648B but they still have over a 100B in cash over debt. They are only one of two of their major competitors that has more cash than
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Unformatted text preview: debt. (The other is HSBC) They also give 4.5% 5-year average dividend yield. Their P/E ratio is also dropping down to the industry average of around 9. Reason #2 They have plenty of room to grow. The dust has settled after Citi’s fall and it’s a great time to buy for the long term. They have a 52-week change of 50% and if they can get back to a shade if its pre-crisis numbers it would still be a good return. They do have a beta of 2.63 but I think reward greatly outweighs the risk....
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