"Longer term, history suggests that Citigroup (NYSE: C) will be one of the best turnaround plays out there -- if we have the intestinal fortitude to stick it out," says Keith Fitz-Gerald in The Money Map Reporter.
"Based on Travelers alone, Citi's breakup value is roughly 30% higher than where it is trading today. Other business lines suggest even more money on the table.
"That is why we want to be net buyers at these levels just like some of the smartest money on the planet, including companies like PIMCO and even investors such as Wilber Ross who are legendary for buying on the cheap.
"That doesn't mean there won't be more down days to come or that we won't hate every day we own Citi, but the financial sector is essential to the economy and being able to buy in for 25 cents on the dollar makes sense for any savvy investor looking to the longer term.
"In recent news, rumors are flying that it's trying to unload its South Korean business unit. The company has officially denied them, but after a recent wave of unloading other assets in Asia, there's probably some truth in there somewhere.
"And that's good considering we're hearing that the company plans to cut home-mortgage exposure another $45 billion in the next 12 months... and save a hefty $200 million in the process.
"Where might the money go? It's likely that Citi will aggressively use the money to expand. And according to Deallogic, they're doing just that. The deal-tracking firm reports that Citi has lent the most money of all its rivals for mergers and acquisitions.
"During my trip to Singapore last week, I observed Citi's presence everywhere. Not only are they pushing for growth there, but the entire region remains flush with capital, which is similarly good for the stock when it comes to a recovery. Overall, the worst may actually be behind Citi, at least for now."
Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.
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