For the first time since October 2009, Citigroup (NYSE:C) surged above $5 a share, continuing the rally it has enjoyed so far throughout April.
So far in April Citigroup has exploded for almost a 25 percent gain, largely on the news the government was going to start to divest of its stake in the company and the giant bank was selling of non-core assets to become more streamlined in its focus and operations.
Most investors are focusing on the government announcement though, as the majority believe it’s crucial to the company in order to be able to make the decisions they want in relationship to running the company; something they are hindered by in their current circumstances.
A particular area that got a boost with J.P. Morgan which could also be part of Citigroup’s quarterly results is in the area of mortgage payments behind in the early stage of the process. In other words, Chase had fewer people missing payments for the first time, and that shows there’s some stabilization possibly entering the market, which will make it easier for banks to generate profits rather than write down failed mortgages.
We’ll have to wait to see with the Citigroup report though, as now that Chase outperformed, the pressure is on them, and if they don’t have similar results, and now that expectations have risen, they’ll probably take a big hit if they report lower earnings which would signify ongoing problems with the company.
At this time, even with the good performance by Chase, analysts still believe at best Citigroup will break even, and that is more in line with the reality than that they may have made some unforeseen move which will surprise every one.
Either way, it seems investors believe there may be something there that others aren’t seeing, based on the price continuing to go up. That could easily change on Monday, and most of us are anticipating some practical guidance as to how Citigroup is really doing.
