fools:For more than a decade, Citigroup and USB have been priced in a very similar fashion by the stock market. Same business, same tight-fisted management, and so on. Statistically, their stock prices have been very closely correlated. They move together. To see this is the case, a picture might help: http://finance.yahoo.com/q?s=usb&d=mym&c=c All of this changed during the past year in which Citigroup is up 75% and USB is down 25%. At today's close, Citigroup was priced at $58.39, or 22.9 times ttm earnings of $2.60. At the same time, USB was priced at $21.77, or 10.13 times ttm earnings of $2.08. With Citigroup dollars now worth $1.75, and USB having fallen in price to $.75 on the dollar, Citigroup can now buy USB for only 40% of the share-per-share dollar price of one year ago. This yawning gap will not persist. Citigroup is going to buy a regional bank. None is cheaper, nor better situated than USB. You read it here first. Best wishes, Mark Hirschey
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