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Citigroup to begin layoffs, stock attractive?

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CNBC says that Citigroup layoffs will begin next week. Management will likely axe between 5 percent and 10 percent of its 320,000 employees. No official word as of yet. But it does indicate that Vikram Pandit is moving quickly. At least one analyst thinks the stock has moved into the attractive category. The stock has been beaten down to below $30, from about $55 a year ago. Richard Bove, of Punk Ziegel & Co. has broken with the pack by saying the stock is now a buy. Unlike Meredith Whitney and other analysts, Bove does not believe Citigroup will be forced to cut its dividend to shore up its capital ratios and that its earnings potential is being obscured. This seems to be a minority position at the moment. We'll see who wins.  

For more:
- here's an AP article
- here's the CNBC notice

Comments

I guess we did see which analyst was completely wrong.

Citi is about to go the way of the dodo.

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