C will face more challenges short term. However, with its share price down more than 65% from its highs this year, the stock price now reflects most bearish outcome. Investors are now expecting huge writedowns and more troubles ahead. Abu Dhabi investment of record 7.5 billion signals that smart money is taking a look at this company with glass half full view. This franchise has a global presence with more than trillion dollars in assets. The business is well diversified outside of the sub-prime and other financial derivative related to sub-prime loans. Long term, I expect C to mak a solid comeback. upcoming catalysts could be announcement of new CEO, Paulson's sub-prime mortgage rate freeze plan, as well Fed rate cut in Dec. I like the stock at this level.
$33.66 (12/06/07)
