In what many consider to be the boldest call on the Street in a while, Punk Ziegel's Dick Bove called Citigroupthe best buying opportunity he’s ever seen.
Dick Bove joins the traders to explain his reasoning. Following is a synopsis of his main points.
- Citigroup is at its cheapest levels since 1990
- The stock is currently trading 8% below book value, an historically wide margin
- Even when you exclude writedowns, the stock seems cheap. And Bove thinks the writedowns should be less than expected.
- One of the big problems with Citi in the past was its weak management, but they might have turned the corner. Bove thinks the current team is a significant upgrade over the previous regime.
- And as an added benefit, no bank has the global reach that Citi does.
The Bottom Line: I think the stock will be trading at $55 in the next 3 years, concludes Bove, which is double from where it is at the present time. “You only get a once in a generation chance to buy a stock like this at this price. This is it,” he says.
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> Punk Ziegel: Buy Citi on Talk of Capital Strength
