Scomi -la - clear at 0.12 , bought 0.1167
Scomimr - cleared at 0.475 bought 0.467
Citi - cleared 4.32 bought 4.2
DJI almost break 11,000. It retraced back before touching 11k. It should break 11k before May. But I think its time to say goodbye to the stocks. Initially i thought i could have to wait untill May. But seemed it was a bit earlier now. No regret because i didnt lose any money now.
Citi, i didnt wait untill the announcement of it Financial Reports next week . I think by next week it shld break 5 Dollar. I sold it because i dont want to rush to sell if there is any bad news in the market , and as we all known treasury are going to sell stocks its 27% after 19 April. Didnt sell the highest , instead at one of the lowest point of the day.
I think i shldnt be greed. Imagine how i felt bad 3 mths ago when it hit lowest 3.15. At least now,no losses, gain a peanut but i can rest a while, and pratice on the wallstreet gold words - Sell In May and Go Away. This year Maybe Retracement will come earlier, i have some senses, market are way too hot. Before June.
Maybe will re-enter market , when there is an opptunity, somewhere in July? I dont know, but i didnt draw a timeline for it.
I always remember the the taught from one of the Guru's. You dont need to trade everyday. All you need is to find a oppotunity to enter the market at the correct timing, for the correct stocks in which might bring you 100-1000% of profit. Instead enter the market frequently/wrongly and losing 30-50% or earn only 5% for every trade.
Read some artical , how much does Citi Worth.
If Citibank can earn 1.25% to 1.5% on its assets, as Pandit predicts, then EPS could be 57 cents to 68 cents (1.25% on assets of about 1.3 trillion and shares outstanding of 28 billion). He also expects to grow assets 5% per year. These estimates assume the economy does not deteriorate. Based on these figures and assuming a 10x multiple the shares are worth at least $5.70 to $6.80. I am a little surprised at these numbers because I thought the stock was probably worth closer to $9.00. If assets grow by 5% over the next few years that would add about 3 to 4 cents in earnings per year. Using another metric - ROE, the banks might be expected to earn 10-15% which implies earnings of about 53 cents to 80 cents. Of course, the big unknown is the economy. If the economy is better than expected then loan loss reserves might be added back which would boost earnings. Analysts in aggregate estimate C will earn 4 cents this year and 34 cents in 2011. There seems to be scope for some upward revisions. However, Pandit has not given a timeline for his targets.
Out of interest, I did the same calculation for BAC - $2.25 trillion of assets and a 1.25% ROA equates to about $2.70 of EPS. Again, using a multiple of 10x means the shares are worth about $27. Incidentally a ROA of 1.5% equates to about 33 cents per share in earnings - or a share price of $33. Based on ROE the shares are worth anywhere between $22.00 to $33.00. I have heard analysts say BAC is worth about $30. Analysts are estimating BAC earns 81 cents this year and $1.99 in 2011. Again, there is room for upward revisions. One needs to be patient and hope the economy doesn't diappoint.
On these numbers, BAC has more upside than Citi and I believe is less risky. But I own both!
