Well-known investor Ken Heebner was on CNBC to discuss Citi's (C, Financial) CEO Vikram Pandit's resignation from the company. He also provided his outlook for the housing market and housing prices.
-- Citi is well positioned even after the CEO's departure.
-- Recently quarterly earnings were strong, and Citi is selling at eight times next years earnings.
-- Citi has fixed its balance sheet, has lots of cash and is increasing its reserves.
-- Pandit did a great job; it doesn't matter who runs the company now.
-- Break up will not add value. The market will pay a higher multiple for Citi as it is today and market value its diversified portfolio of revenue streams.
-- Optimistic about the U.S. economy and U.S. stock market.
-- U.S. has many years of growth ahead as housing improvements which will lead to more people getting jobs. And that will drive spending and growth.
Here is the video:
-- Citi is well positioned even after the CEO's departure.
-- Recently quarterly earnings were strong, and Citi is selling at eight times next years earnings.
-- Citi has fixed its balance sheet, has lots of cash and is increasing its reserves.
-- Pandit did a great job; it doesn't matter who runs the company now.
-- Break up will not add value. The market will pay a higher multiple for Citi as it is today and market value its diversified portfolio of revenue streams.
-- Optimistic about the U.S. economy and U.S. stock market.
-- U.S. has many years of growth ahead as housing improvements which will lead to more people getting jobs. And that will drive spending and growth.
Here is the video:
