Citigroup Up 30% Today

Last Thursday I wrote that Citigroup (along with GM) looks to be a very interesting possibility for investment because it is a huge company at a historically low price.

Yes both Citigroup and GM are doing very poorly but it seems clear that the US government has no intention of letting either of them go bankrupt either. With the support of the government doesn’t it seem likely that they will eventually regain their footing and that their stock prices will eventually go back to close to their previous levels?

If they do get back to those levels then there’s obviously a huge amount of money to be made on the ride back up to those levels and today’s 30% gain by Citigroup was definitely a nice ride up for me!

Don’t get me wrong. There’s still a lot of risk involved in investing in Citigroup and GM but if I had more money to invest in them, I would. Unfortunatly I do not have any more money to spare for investments at the moment.

Citigroup (stock symbol: C) is now at 2.33 which is still a pretty nice level to get in I think. Certainly it would have been a lot nicer to get in when it was under a dollar but I doubt it will go under a dollar again. For full disclosure: I bought C at $1.62 (Obviously I wish I had got in at $0.99 too but I didn’t pull the trigger when I first had the idea.)

Citigroup’s high price was $55.12 on May 25, 2007. It’s low during the 2000s (until the recent slide) was $26.83 on September 20, 2002. So it doesn’t even have to reach it’s previous highs for a huge gain. Even reaching it’s previous lows would bring huge rewards to those who invest at these levels.