Established a 4% position in Citigroup, ticker C, at $4.39.
Reasons for buying include its large exposure globally, which should benefit from growth in Asia and South America; a potentially steepening yield curve associated with an improving outlook in the U.S. that should benefit the company domestically; and a C2011 P/E under 10x.
The stock continues to creep closer to $5, which should enable a wider group of funds to invest in the company. In many cases, funds avoid stocks under $5 due to internal rules, higher transaction costs, and the perception of poor quality.
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