Citi and Merril...

[hawk126]

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Seems like citi may have to cut its dividend, but seriously, P/Es of 9.5 and 13 respectively... Is now the time or have we yet to hit bottom?

 

[Anna Plastic]

Seems like citi may have to cut its dividend, but seriously, P/Es of 9.5 and 13 respectively... Is now the time or have we yet to hit bottom?

I think we have a while to go before hitting bottom, and I'm not alone on this one.

 

[etf]

I think we have a while to go before hitting bottom, and I'm not alone on this one.

washington mutual is trading at a p/e of 6.5, and sports a 10.2% dividend. so far, they haven't given any indication that they are going to cut it, although logically it would be the only possible step. still, if this whole subprime thing clears up sometime in the future, this could turn out to be a pretty solid investment.

 

[The White Coat Investor]

Keep in mind that only one aspect of a P/E ratio is definite. You know the price, but do you really know the future earnings? If they were 40% lower than you expect, would that P/E ratio still make you want to buy? Are you sure you know more than the market? I'm not saying this won't be a good investment, but you better be convinced you know more about the company's future prospects than the market does, because the market thinks a P/E of 6.5 is just right right now.

 

[etf]

I'm not saying this won't be a good investment, but you better be convinced you know more about the company's future prospects than the market does, because the market thinks a P/E of 6.5 is just right right now.

the market has been right, as my investment in wamu has been cut in half. i guess it's a test to see if i'm really in it for the long haul. i had a similar test a few years ago with an energy company, and it turned out ok in the end - i guess only time will tell if this subprime situation is something the company (and a lot of other financials) can get past.

 

[hawk126]

I took the plunge on Citi... Didn't buy a HUGE chunk, but for me it was a pretty decent bite. Now I just have to do my best not to look for the next 6 months *crosses fingers*

 

[Shredder]

I recently took a short ETF in financials but I don't know how long I'll hold on. I'll see how the next week or few play out