DALLAS, Texas 3/13/2009 2:11:41 AM
News / Finance

Citigroup (C): Should You Buy?; Article Posted on BeaconEquity.com

BeaconEquity.com announces the publication of an article outlining Citigroup’s financial situation through government intervention, and whether or not the investment is worth the risk.

 

Investors can view all of the investment articles for free by visiting: http://www.beaconequity.com/m

 

In the article the author writes:

 

“Let's rant on the company first, then we'll discuss the trade.  First, my view is the notion that Citi was profitable in January and February of this year is a complete boldface fictional story.  There's Hollywood accounting and there's Wall Street's accounting of the major money center banks; both read like a childhood Cinderella stories, or better yet, the plot of Mel Brook's comedy, 'The Producers’.”

 

By investing small amounts of capital through a range of investments with a small chance of a grand slam return, an investor can increase his return on his overall portfolio.

 

As an example: If Citi can survive bankruptcy or nationalization of its assets, the share price might move back into double-digits some day.  So risking 1% of your capital for a possible return of a 7-10 bagger (C presently trading at $1.50) might be an acceptable risk/reward play.  If the investment goes to zero, 1% of a total portfolio return is shaved off.  But if the stock moves back to $15 in the coming years, a total portfolio return is boosted up by 10%.

 

To read the entire article visit http://www.beaconequity.com/m

 

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BeaconEquity.com is one of the industry’s largest small cap research providers. Beacon strives to provide a balanced view of many promising small cap companies that would otherwise fall under the radar of the typical Wall Street investor. We provide investors with an excellent first step in their research and due diligence by providing daily trading ideas, and consolidating the publicly available information available on them. For more information on Beacon Research, please visit: http://www.beaconequity.com/m

 

DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the "SEC") or with any state securities regulatory authority.  We are neither licensed nor qualified to provide investment advice. BeaconEquity Research nor its affiliates have a beneficial interest in the mentioned company; nor have they received compensation of any kind for any of the companies listed in this communication. The information contained in our report is not an offer to buy or sell securities.  We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

 

 

Source: BeaconEquity.com

 

Beacon Equity Research

Jeff Bishop, (469)-252-3505

press@beaconequity.com