10 Best Stocks for 2014: #9, Citigroup (C)
Investor: Greg Harmon
YTD Return: -8%
Well, Greg Harmon of Dragonfly Capital took a flier with his 2014 stock pick of Citigroup (C) on the hope that the charts were shaping up into a big rally for the megabank this year.
Unfortunately, the news got in the way.
Citigroup asked for a bigger buyback and dividend plan, but instead of granting it, the Federal Reserve decided to slap the company with a failing mark in its latest “stress test.”
As regulators put it:
“While Citigroup has made considerable progress in improving its general risk-management and control practices over the past several years, its 2014 capital plan reflected a number of deficiencies in its capital planning practices, including in some areas that had been previously identified by supervisors as requiring attention, but for which there was not sufficient improvement.”
The stock was doing OK through mid-March, but after this gut punch, shares quickly gave up about 9% and have settled well into the red YTD.
Of course, it’s worth noting that the wound is still fresh. There’s a lot of time left in 2014 for Greg’s pick to validate itself and deliver a profit to shareholders if things turn around.