Citigroup is a diversified global service holding company. It has 200 million customers in over 100 countries. Some very exciting news that has recently taken place was the buying of stakes in a bank in China. Citibank was given the right to buy up to 24.9% of the Shanghai Pudong Development Bank Co. If Citigroup fully exercises the option, it will be the first foreign bank to own more than 20% in a Chinese lender. Citigroup will also be allowed to buy additional stakes every April 30 in 2006, 2007, and 2008. They can extend the buying to 2010 if they want. There are a lot of people in China. Citigroup will be exposed to all of those people. If the two banks also put a credit card center, it will help Citigroup out even more.
The only risk Citigroup has that I can see is the price-to-book ratio. You want that to be below one or not much over one and the company's ratio is 2.6. That is a good bit over one. The grade for growth was a C+. I guess that is average and ok, but I think it should be higher. With the Chinese bank situation, I think the growth grade will improve.
I think this stock is a very good idea for the investment fund. It is a very strong financial stock and will help the portfolio as a whole because it will grow. It is already a well-known and respected company, but unless something horrible happens, it will be up and running with the best. The 52-week range is 24.42-47.09. The price right now is 39.15. On top of that, the buyers recommend that we buy.
The reasons I feel we should buy this stock is because I feel like so much is happening with it. It is being exposed to so many other people and growing. It has a grade A in financial strength. It is also undervalued. Over the next several years it is going to produce because the high and low are 85.00 and 55.00. The stock right now is 39.15. It will pay off.