Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Jurgis Bekepuris who wrote (48878)	7/24/2012 11:30:51 PM
From: Dennis 3	Read Replies (1) \| Respond to of 78730

I am thinking of buying BCS since most of their business is with the UK, US, Japan. The libor scandal clobbered the stock. Derivatives business is growing and could be a big question mark.

To: Jurgis Bekepuris who wrote (48878)	7/25/2012 12:42:45 AM
From: Spekulatius	Read Replies (1) \| Respond to of 78730

Re C or BAC - right now I prefer C over BAC, because I believe that C is further along to fix the outstanding issues (mortgage warranties etc), due to lesser exposure. i think C has less tail risk and similar upside than BAC, which makes it a better deal. BAC has a more focused business and I prefer BAC CEO over C. With the recent strength in housing, and due to my believe that the string of issues and the cost associated with them is going to wind down in 2013 at latest, i think there is a clear path to better profitability and probably a dividend. I think C is going to get there head if BAC. i could be wrong of course and new issues could crop up, as it has been the casefor a couple of years already (Libor being one of them). Just to put the number into perspective, Citi Holding (the bad bank) has been loosing ~920M$ last quarter or 32c/ share. If this loss goes away ( and it will because the assets in Citi Holding are rapidly shrinking) and the capital trapped is deployed, C should earn 5.5$/share rather than the roughly ~4$ now. There nothing else neded to get there, not a better economy, or higher interest rates, or pickup in investment banking, it just a matter of bad assets running off.