Wednesday, November 21, 2007

Time to buy bank stocks?

Originally uploaded by lakersalex
This morning, The Sun's Financial Diary arrived in my inbox with an article discussing the beaten down banking sector. Turns out the dividends of those stocks have risen as their share price has dropped. Citigroup, which is down almost 40% YTD has increased their dividend 6.8%. I'm thinking that the contrarian thing to do is buy some bank stocks right now. At the very least, could Citigroup be a takeover candidate in it's weakened state? Its P/E of 7.5 looks great as well! I'm no expert, but isn't this what investors are supposed to do, buy when everyone is selling?

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