Other smart money has recently been speculating on the stock. Hedge fund legend George Soros bought nearly 100 million shares in the fourth quarter of 2009; John Paulson of Paulson & Co. added more than 200 million shares; and Daniel Loeb's Third Point bought shares worth $83 million.
But Berkowitz says investors can't ignore the Treasury's move to allow Citi to repay its Troubled Asset Relief Program (TARP) funds. "The only way the government was going to allow repayment was if they thought the bank was recapitalized," he says.
We bought some Citi stock a few weeks ago, in our IRA, when it was trading in the high $2 range. We'll see if it pays off.