Citigroup Shares - Down from 4.6 to 3.8'ish right now
Citigroup's shares may be tumbling, but Ladenburg Thalmann's banking analyst Dick Bove said he does not see any reason for Citigroup to follow the path of Lehman and fail. Bove maintained his "buy" rating on the stock on Thursday.
The current decline in the stock price is reflecting a series of fears related to loans and security values that cannot be actualized without a severe setback in the economy and a very rapid increase in interest rates, Bove said.
"It would take a Depression every bit as large and long as the 1930s debacle to shake this company's viability," Bove said.
But by falling below $5, many mutual funds and institutional investors -- in particular pension funds -- must unload shares of Citigroup to comply with investment guidelines.
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