Spin-off #2 - Citizens Financial Group

Another spin-off I have written about is Citizens Financial.  Back in July I noted that it was time for me to sell:

'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:

$RBS achieve that 5% leverage ratio & post Citizens disposal above this

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...

 ...but I note it is not quite all green traffic lights.

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.