After Thursday’s massive rally, investors were in full “buy the dip” mode. Even if a company has not served the best Third quarter reportif the stock was down, so much the better.
The above scenario applies to Citigroup Inc Cthat is the PreMarket Prep share of the day.
Great rally from the double floor: Citigroup hit a new low of $40.05 on Wednesday and recovered to close at $40.84. In Thursday’s general open, Citigroup bottomed just four pennies from that low and shot back to close at $42.95.
Citigroup Q3 report: Ahead of the open Friday, the company reported third-quarter adjusted earnings per share of $1.50 versus an estimate of $1.42 and revenue of $18.51 billion versus an estimate of 18, US$25 billion announced.
The bank also said, “To be clear, our intention is to reduce our presence in Russia.”
CFO Mark Mason said deals in the pipeline remain quite strong compared to pre-pandemic levels.
For some reason the good report wasn’t good enough and the issue was down during premarket trading.
PreMarket Prep’s Take: When the topic came up on Friday’s show, it was trading down 50 cents in the $42.50 range.
“I think you’ll find buyers today after Thursday’s price action,” said co-host Dennis Dick.
“Money managers who didn’t commit capital yesterday will do so today,” he said. “I’d like to buy yesterday’s low, but I don’t think it will get that low.”
The author of this article was looking to “buy” the dip in the issue, targeting the $42 area as a possible entry point with a stop at the recent lows.
C price action: Investors jumped in well ahead of the co-host’s potential entry points. After opening slightly higher, it had a brief drop but found support at $42.80 just below the close ($42.95) and started a significant rally.
In fact, the issuance reached its highest level since October 4th, when it peaked at $44.75,…
