$C isn't that bad. You critics make me sick.

Well, they turned out a profit because they were able to sell their assets. They are building a larger reserve for future losses. My initial investing hypothesis included the willingness to hold and just sit on the stocks for a couple years.

There are a lot of people out there claiming that they understand what’s going on. I’m not that type of person. If I had to guess on this one, lets see.

Their shareholder equity is 154B and their market cap is 20B (Assume 25% dilution, cause I just feel like it right now).

K, let’s assume that citi is going to lose $10B each quarter for the next 8 quarters before turning profitable again (mid 2012). Remember, critics are complaining of a $5B loss.

Your upside to book value with these rough estimates is 200% return. So, is this a good value? Probably.

But, what the heck do I know. Disclosure: I think I'm long citi call options. Not sure. I bought a bunch of bank just out of the money call options back in late march. Needless to say, I should have just margined the heck out of my account. Options are also a function of volatility, and back then I paid a premium.

Glen

From: Scott Stefani Sent: Sunday, July 19, 2009 11:06 PM To: Bradford, Glen Richard Subject: Thoughts on Citi

Hi Glen:

Hope you had a great weekend. I'm curious what your thoughts are for Citi's future. You had recommended Citi a while back with your "mark-to-profit" write-up on CAPs and I'm curious where you stand after their 2nd Quarter results (which sounded pretty good to me, outside of their Retail Banking and Credit & Mortgage Losses).

I have about 5% of my money invested in Citi currently, and I'm wondering if I should lessen my exposure, since it's future seems a little cloudy, and instead use that money to get more of your China Uplisting recommendations. I'd appreciate any advice you might be able to share. Thank you Glen.

Scott