Playing Citi in the Post-Pandit Era

According to Barron’s Almost since the moment investors learned that Vikram Pandit was out as chief executive, and Michael Corbat, a Mr. Fix-It, was in, investors began aggressively buying bullish calls, in the expectation that the shares (ticker: C) would advance. Previously, they had been purchasing bearish puts…...

PANDIT'S DEPARTURE followed a supposed clash with Citigroup's directors over corporate strategy. This suggests that the board has substantive changes it wants implemented, and that Corbat will do so….

The new chief exec, a 30-year Citigroup veteran who recently ran its operations in Europe, the Middle East and Africa, is expected to use the 2013 budget as a tool to reform the big bank. He is also expected to ask regulators for permission to repurchase stock, and raise the four-cent annual dividend. Either action could cause the shares to surge higher.Also, Corbat's leadership begins as many investors are increasingly interested in buying financial stocks. Of course, the Federal Reserve's third round of quantitative easing doesn't hurt, as many investors view "QEternity," as some Wall Street wits call it, as removing the risk of owning stocks, especially financials. This view has been substantiated in the financial sector….........................................................................................................................................................

http://online.barrons.com/article/SB50001424053111904034104578058652041542288.html?mod=BOL_twm_mw