As the chart indicates, investors who purchased Citigroup between December 2009 and February 2010, as prices bounced along near $3.13, were rewarded with a 62% return within a few months. Since May, the stock has been tracing out a similar pattern, which will very likely resolve itself to the upside as well. Why? First, the U.S. Government is divesting themselves of their huge position, which diluted the shares substantially. And if that isn't enough, the company is unloading a lot of their bad loans.
At it's current price of $3.71,
Citigroup's shares are a steal, since we expect it be closer to
$5 within six months and north of $10 a few years from now.
To obtain considerably more bang for your buck, we highly recommend
the January $2.50 call at $1.28 or the January 2012 $2.50 call at