All Entries Tagged With: "Citigroup"
‘Stocks On The Move’ Flags Key Volume – IBD – Investors.com
To find breakouts, you need to find stocks making big gains in strong volume — the more, the better.
A breakout is when a stock climbs above its buy point in unusually heavy trading.
Trouble is, if you rely on “most active” lists, you just get stocks trading the highest number of shares. for example, Citigroup (C) might trade 1 billion shares one day, but that would still be slightly above normal for the banking giant.
To find the stocks moving in truly heavy volume, you need a screen that compares the stock’s trading with its average.
In IBD and on its Web site, Investors.com, Stocks on the move can help you flag such stocks. this table, today on Page B7, is often the first place where you spot a breakout. the online version is on the home page of Investors.com.
Check the stock charts for each name up in volume, looking for those clearing handles or other buy areas. A stock’s volume should be at least 40% above average when it clears a buy point.
Stocks on the move can also point you to stocks under accumulation. Most of the time, stocks rising in volume are not crossing buy points. Yet it’s valuable to know which are climbing in heavy trading.
Big moves in stocks are nice, but they mean a lot more when backed by heavy volume. A stock that surges in high turnover is the work of professional investors such as mutual funds and hedge funds. Institutions have the firepower to move stocks significantly higher.
At the heart of Stocks on the move is the volume percentage change figure. It projects how much volume will be traded vs. a stock’s 50-day average. the volume percentage change fluctuates throughout the session, depending on trading activity.
A stock with an average daily volume of 500,000 shares will show a volume percentage rise of 100% when it has traded 1 million shares.
Stocks on the move can be a tool to help you find stock ideas. but investors also need to do further research.
In Stocks on the move online, there’s a link to IBD Stock Checkup. this will give you information on the stock’s performance within its industry as well as key fundamental and technical data. There’s also a link to a chart for the stock, and another to add it to your watch list.
Click on the green arrow to get a list of stocks moving up in big volume. or click on the red arrow to get issues selling off in heavy volume. You can click on “View All” to get an expanded list of up to 20 stocks. but you need to be a subscriber to IBD or Investors.com to view the full list.
‘Stocks On The Move’ Flags Key Volume – IBD – Investors.com
$3 Stock with Huge Potential: I Call it Big C
Looking for a strong large cap stock with long-term potential then I have the perfect holiday pick for you. At one time it was a giants investment bank that controlled the financial world. Due to the credit crunch and worldwide global recession the stock price dropped however I believe that the good times are ahead.
Check out these numbers:
1. Market Cap $78 Billion
2. Daily trading volume of 3 billion shares
3. Enough shares to give everyone in the world 4 shares, 22.86 billion to be exact
4. Billions of dollars in revenue the past 5 years
5. Stock price hovered around $50 from 06’ to 08’
I’m thinking minimum this is a $10 stock if not higher. Nope this in-fact is Citigroup (C), the multi-billion dollar investment bank that is currently trading at a meager $2.62. I mean is this a joke. Normally I am the biggest opponent to any stock below $5, my theory being that they are usually on the down and out or a penny stock which posses far to much risk to reward, but in this case Citigroup helped change my mind. With Citigroup trading in the $3-$4 range I feel there is a very low risk to huge reward ratio that I would be ignorant not to capitalize on. With Citi’s 
latest dilution of shares they are now able to pay off all the TARP. This helps out in both ways; it keeps the government invested within C as a major shareholder but limits their ability to control the company. This gives Citi the ability to return to normal operations, which in most cases was very successful for 20 of the past 22 years. A 91% success rate, in my mind that’s all right.
So you’re still concerned about the Government being a major shareholder?
Don’t be, in fact it benefits Citi. The government has over 7 billion shares invested within Citi, this meaning they are going to do anything to their ability to make sure this invested rises to pay off the numerous amounts of debts they have tallied up. Obama, Peloski, and Co. are not going to take on loss on that investment so this is my insurance that the stock will not fall below $2.62. Consider that to be the support level for all Citigroup shares. I mean Citigroup doesn’t need to have outstanding numbers for the stock to soar. We already know that revenues will be down in 2010 due to lower asset base. However if they are able to show improvement
internally that could be a bullish sign for the future prospects of the company. Currently Citigroup is planning on restructuring its business into Citicorp and Citi Holdings, with Citi Holdings carrying mostly non-core and distressed assets. The goal is to unwind Citi Holdings; this will eventually lead to a more stable revenue stream. Adding to this I believe C’s tangible capital levels are more adequate now with the government and public/private investors switching their preferred shares to common equity. Even with all this restructuring I think long-term Citi will be able to regain its earnings power it once had. If so that can make this company’s share prices worth well over $10 if not higher. I feel the company has seen its worst times. Leaving them behind, Citi is at such a discount price I feel it would be foolish not to make a play. It’s a big company, strong brand name, with lots of cash on hand. What doesn’t sound good? Valuations for Citi next year are hard to predict, though take my word that Citi will be trading over $5.50 within a year if not higher.
