Our barber told us today that he recently bought 16 shares of Citigroup. He just said he felt inspired to buy Citigroup after watching their advertisements and that he just hope that this bank will not fail or else that chio eurasian girl he has been bioing would be out of job. We just love this barber for his cute way of thinking. Anyway, we decided to check it out. Let's use the GIC and Abu Dhabi Investment Authority (ADIA)'s investment as the basis of analysis, and not ratios, balance sheet, tier one ratio and stuff.
From Citigroups 2007 statements (Above) From GIC's press release (Above)
Comparison (Above)
From the comparison table above, both ADIA and GIC would have the option to convert the Citigroup ( Citibank) share to a common stock at the price of around $31.83 - $37.24 ( around 2010 - 2011) and $31.2 respectively, given the assumptions and assuming no adjustments.
Therefore from the above, an inference can be made that GIC or ADIA could be expecting Citigroup's share price to be roughly at least $31-$37 by late 2010. The price of Citigroup share now is hovering around $11-$12. So, is this a good buy now since GIC and ADIA has already invested in it?
Well, having seen the saga of ABC Learning, it might be wise not to follow these entities blindly since who knows what their real motives are. "Transformers, more than meets the eye...doh da di da da...autobots..." Furthermore, ADIA and GIC made these investments in Jan 08 and Dec 07, where the full seriousness of the crisis was still not widely known. So do you think its a good buy? Sharing is caring!
Important: The objective of the articles in this blog is to set you thinking about the company before you invest your hard-earned money. Do not invest solely based on this article. Unlike House or Instituitional Analysts who have to maintain relations with corporations due to investment banking relations, generating commissions,e.t.c, SGDividends say things as it is, factually. Unlike Analyst who have to be "uptight" and "cheem", we make it simplified and cheapskate. -The Vigilante Investor, SGDividends Team
3 articles back, we mentioned that Golden Agri was on our radar for its darn cheap valuations as compared with their peers. On 9 October 2008, Money Mind on Channel News Asia featured an analyst from Royal Bank of Scotland who commented on a SELL on Palm Oil counters (think he also said palm oil prices have bottomed....then why sell?????Damn Bazaar!) but he mentioned that Golden Agri was a BUY due to its relative valuation. Today, our hot sexy "oracle" gave us the latest issue of THEEDGE magazine to read. In it, there was an article write-up on Indo Agri and a short little comparison on the players in the Agri field.( Reproduced here for your benefit) So what is the reason for this stock to be so undervalued relative to its peers. We decided to investigate and could only think of a possible reason, that investors were pricing in a cheaper stock due to the not so favourable history of its management. Read here here to find out more.
Anyway, based on some simplistic technical analysis, this stock has been trading very heavily and their bolliger bands are narrowing, which could mean a possible larger price movement in the coming days.
Important: The objective of the articles in this blog is to set you thinking about the company before you invest your hard-earned money. Do not invest solely based on this article. Unlike House or Instituitional Analysts who have to maintain relations with corporations due to investment banking relations, generating commissions,e.t.c, SGDividends say things as it is, factually. Unlike Analyst who have to be "uptight" and "cheem", we make it simplified and cheapskate. -The Vigilante Investor, SGDividends Team