'I concluded a couple of months ago that the hope of achieving a 10% ROTCE opened up the potential for a US$27-30 share price. With this being pushed back the share at c. US$27 feels there or there abouts.
Citizens Financial has been a great spin-off since the IPO but it feels time to tactically say goodbye to the share. Somewhere at/around that US$24 share price I might feel differently'
I duly sold the share...and it did subsequently fall back...
...and actually after falling below that US$24 level has recovered a bit. The latter occurrence is interesting as late last week - as I noted here - there was some newsflow from the original parent of Citizens Financial, RBS:
Yes, Citizens is to be liberated from any ownership overhang from RBS. Of course this is good news for both.
I still note however that will the company trading at around book value and the current return on tangible equity improving but still stuck below 7% you need to be a believer. A liberated management can work wonders...
My view: I am not getting the impression that I need to rush back into Citizens Financial. Good news re the overhang but given the range of interesting banking stocks (HSBC, Barclays...and possibly RBS) I don't feel the need to rush back into Citizens. I note the technical support building in the US$23s however. This is one level for believers at prevailing.