good buying?, page-34

Citi are, like all other analysts, finally coming to the realisation of which people like Crackpot and myself have been saying for months (well, actually a couple of years now), i.e. the model is dead, they have too many staff and you can no longer assume they will find an arbitrage that will give them continual growth. It may have taken almost 3 years for the market to finally stop giving them the benefit of the doubt, but it was inevitably going to happen when your results start catching up with you.

Even after this downgrade, Citi are still factoring in profit growth of 20% to get the their $1.115b figure for 2012. Imagine if they get stung with the full hit of 100m or 200m in the court case next month - there is your 20% in one hit. If the ATO win that battle, will there be more to come? Will Mac have to start provisioning for the potential losses? Risky time to be investing IMO.

DYOR and don't just take on trust - plenty of analysts now with egg on their faces after backing them for so long.

As I have said before, I hold some stock only due to restrictions on selling.