tag:blogger.com,1999:blog-31427364.post3453740382307339440..comments2024-03-26T03:52:23.395-07:00Comments on Housing Analysis: Bill Miller's Commentsmohicanhttp://www.blogger.com/profile/06094213357140749289noreply@blogger.comBlogger15125tag:blogger.com,1999:blog-31427364.post-9689606572231958672008-02-15T12:21:00.000-08:002008-02-15T12:21:00.000-08:00I know everyone is probably sick and tired of hear...I know everyone is probably sick and tired of hearing WWWBD? (What Would Warren Buffett Do) but seeing as how is he is heavily invested in Wells Fargo/BoA I am closely watching these stocks as the financials continue to price in the housing fiasco and the long term fallout. <BR/><BR/>At a time like this you want to be looking at companies with a trustworthy/conservative management team, this is one of the criteria that Buffett uses when deciding which companies to buy. I'm not so sure that Citi falls into the trustworthy management team category. Caveat: I'm a long time coattail investor and this is just MHO.Tony Danzahttps://www.blogger.com/profile/11834617529220173312noreply@blogger.comtag:blogger.com,1999:blog-31427364.post-15249982313566810762008-02-15T11:46:00.001-08:002008-02-15T11:46:00.001-08:00Well that link didn't work. I was trying to plug ...Well that link didn't work. I was trying to plug www.dividendsmatter.comWarrenhttps://www.blogger.com/profile/00586650821846362670noreply@blogger.comtag:blogger.com,1999:blog-31427364.post-76234226728377945972008-02-15T11:46:00.000-08:002008-02-15T11:46:00.000-08:00By no means am I a Citi booster, however:They are ...By no means am I a Citi booster, however:<BR/><BR/>They are the biggest financial services company in the world, in both revenue and profit, only beaten by oil companies, as of 2007 Forbes numbers of course. They are the biggest company in the world measured by assets ($2.7 Trillion Sept 2007).<BR/><BR/>Given this, its no surprise they are the biggest underwriter, etc.<BR/><BR/>BofA is the biggest bank in terms of customer deposits and market cap, as of late 2007 I think. Take what you will from that.<BR/><BR/>Sam, I don't disrespect your opinion, but I wouldn't make significant investments on advice from a blog, unless maybe its <A HTTP://WWW.DIVIDENDSMATTER.COM HREF="" REL="nofollow">this one</A>. Actually he has analyzed both banks in the past and points to a similar buy price.<BR/><BR/>Citi has dropped significantly and cut their dividends, while BofA hasn't, but will they? I'd consider both if BofA wasn't about 40% more expensive.Warrenhttps://www.blogger.com/profile/00586650821846362670noreply@blogger.comtag:blogger.com,1999:blog-31427364.post-74056820632714196692008-02-15T11:30:00.000-08:002008-02-15T11:30:00.000-08:00This is apropos to my earlier post on Citi:http://...This is apropos to my earlier post on Citi:<BR/><BR/>http://globaleconomicanalysis.blogspot.com/2008/02/no-underwriter-support-for-failed-muni.html<BR/><BR/><I><BR/>"UBS (UBS), the second-biggest underwriter of auction-rate securities, will no longer buy deals that fail to attract enough bidders, joining a growing number of dealers stepping back from that $300 billion market.<BR/><BR/><BR/><B>The largest underwriter of those instruments is Citigroup (C).</B><BR/><BR/><BR/>According to a report by Bank America (BAC), 80% of all auctions of bonds sold by cities, hospitals and student loan agencies were unsuccessful yesterday."</I>Mangohttps://www.blogger.com/profile/12783357836567969061noreply@blogger.comtag:blogger.com,1999:blog-31427364.post-30023922953681988912008-02-15T10:29:00.000-08:002008-02-15T10:29:00.000-08:00None of the big US banks are going away, but don't...None of the big US banks are going away, but don't think that their shareholder equity can't go away.<BR/><BR/><A HREF="http://uk.finance.yahoo.com/q/bc?s=NRK.L&t=1y" REL="nofollow">Northern Rock, anyone?</A>patriotzhttps://www.blogger.com/profile/11154064267408955762noreply@blogger.comtag:blogger.com,1999:blog-31427364.post-84280591776512543352008-02-15T09:38:00.000-08:002008-02-15T09:38:00.000-08:00Bill Miller isn't calling a bottom here but he is ...Bill Miller isn't calling a bottom here but he is saying that he sees value in a lot of the names he follows. I think the value investment style will be very well served by the latter half of this year and Bill Miller's fund will likely do extremely well as it has in the past.mohicanhttps://www.blogger.com/profile/06094213357140749289noreply@blogger.comtag:blogger.com,1999:blog-31427364.post-55972561325472379192008-02-15T09:27:00.000-08:002008-02-15T09:27:00.000-08:00It was my impression that Citi might go out of bus...It was my impression that Citi might go out of business. Of course, they will get a buyer, but it still seems incredibly risky when we haven't even seen CDOs blow up yet, nor the Ambac and MBIA blow up, nor the biggest wave of ARMs reset.<BR/><BR/>Mish is particularly hard on Citi:<BR/><BR/>http://globaleconomicanalysis.blogspot.com/2007/11/question-of-solvency-at-citigroup.html<BR/><BR/>http://globaleconomicanalysis.blogspot.com/2007/11/citigroup-fighting-for-its-financial.html<BR/><BR/>Of course YMMV but I would stay well away from Citi for another year or two. This mess is only just beginning, not ending.Mangohttps://www.blogger.com/profile/12783357836567969061noreply@blogger.comtag:blogger.com,1999:blog-31427364.post-28837544593709783602008-02-15T08:45:00.000-08:002008-02-15T08:45:00.000-08:00My banking experience with Citi at the retail leve...My banking experience with Citi at the retail level was poor. On the other hand, my experience with BofA was good. Just my two cents.Pandahttps://www.blogger.com/profile/07255920606087666835noreply@blogger.comtag:blogger.com,1999:blog-31427364.post-42858864619613573342008-02-15T08:34:00.000-08:002008-02-15T08:34:00.000-08:00Radley,I've been looking at US Banks as well, alth...Radley,<BR/><BR/>I've been looking at US Banks as well, although I prefer Citi. They are also at around 5% dividend (after a big cut). They've also written off a lot of sub prime already, on 2 occasions. A lot of their business comes from outside the USA, but you can debate the importance of that since nobody is de-coupled from them yet anyway.<BR/><BR/>Overall it seems like Citi has bitten the bullet with respect to the economy and not continuing to tow the line. At $25 I think they are a good buy, I'm going to put some in my RRSP because they are US.Warrenhttps://www.blogger.com/profile/00586650821846362670noreply@blogger.comtag:blogger.com,1999:blog-31427364.post-13393635863638208372008-02-14T19:56:00.000-08:002008-02-14T19:56:00.000-08:00Anybody been looking at Bank of America lately?Wit...Anybody been looking at Bank of America lately?<BR/><BR/>With a dividend of 6%, it's looking very attractive.<BR/><BR/>Anyone currently looking at buying American financials, or is it still too early to call a bottom?<BR/><BR/>So far, Bank of America is kind of my favourite.Radley77https://www.blogger.com/profile/14825702358596382959noreply@blogger.comtag:blogger.com,1999:blog-31427364.post-81327062333873164762008-02-14T16:59:00.000-08:002008-02-14T16:59:00.000-08:00On a few occasions this year I've seen terrified p...On a few occasions this year I've seen terrified people selling stocks at any price they can get, and the buyers purchased at fire-sale prices. These market participants would benefit a great deal by reading Bill Miller's comments, or should re-evaluate their risk tolerance.Pandahttps://www.blogger.com/profile/07255920606087666835noreply@blogger.comtag:blogger.com,1999:blog-31427364.post-34691413452506373772008-02-14T16:50:00.000-08:002008-02-14T16:50:00.000-08:00There still is some wishful thinking priced into t...There still is some wishful thinking priced into the equity markets. Sage advice perhaps, as long as one's time horizon is suitably long.jessehttps://www.blogger.com/profile/02155122147972263497noreply@blogger.comtag:blogger.com,1999:blog-31427364.post-46645741854676551352008-02-14T16:38:00.000-08:002008-02-14T16:38:00.000-08:00Yes I can [be a long-term value investor in stocks...Yes I can [be a long-term value investor in stocks] because I didn't buy a house or a condo.Swirlymanhttps://www.blogger.com/profile/04514608676600597837noreply@blogger.comtag:blogger.com,1999:blog-31427364.post-17383148907457136432008-02-14T15:28:00.000-08:002008-02-14T15:28:00.000-08:00Oops, I meant to put this in the Can you afford to...Oops, I meant to put this in the Can you afford to retire post. Kind of loses something when posted in the wrong spot. I guess I'm not smart enough to retire.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-31427364.post-56752819259475125052008-02-14T15:26:00.000-08:002008-02-14T15:26:00.000-08:00Yes we can because we didn't buy a house or a cond...Yes we can because we didn't buy a house or a condo.Anonymousnoreply@blogger.com