Monday, November 8, 2010

Prince Alwaleed Strokes Citigroup while Dick Bove has Some Concerns (C; KBE; XLF)


Bove maintains his buy, he's a pretty sharp bank analyst see links below. 
First up, a quick hit from Forbes' ETFchannel:
Saudi Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud said in an interview with CNBC late Wednesday that he believes Citigroup (C) is “on the right track” and that he expects the stock to rise over the next couple of years....
And via IBD:
Rochdale's Dick Bove currently see three key issues with respect to Citigroup (C). The first is put-backs and how much Citi will lose on its mortgage servicing portfolio. This amount could be as much as $5B.

The second issue is asset sales after Bloomberg reported that the bank may sell private equity assets yesterday. Bove regards the fact that there is a market for such assets as being more important than the losses Citi may take on the sale of them. 

Lastly, Citi's consumer finance unit is a concern to Mr. Bove as losses are rising.
Despite thee issues, Bove continues to like Citi shares, rating them at "Buy".

As we said a couple weeks ago:
...Higher lows for the last two months and just a tad above the 20 and 40 day EMAs are modestly positive.
From BigCharts: