Nothing's Wrong With C; The Feds Are Really Pushing It Down...

It looks like the government won't let C lift.

The news continues to be terrific, with the rationalizing of the finance unit and preparations for a sale. We aren't hearing anything other than good things about the core business, and we know that it is unlikely to be harmed too much by more financial regulation, since it has been hewing to the toughest line in terms of what should be done, and has had to check with the government on many of its businesses.

Qatar said it was seeking to buy a big chunk. John Paulson, the hedge-fund genius who shorted housing, is buying. Bill Ackman may not be done buying, as he mentioned it at the Ira Sohn Research Conference of hedge-fund bigwigs last week.

To me, this one is still the single best option on America's banking renaissance. It also is an attractive candidate to buy some of the assets of the ne'er-do-well banks overseas, where it already has a presence, as it improves its balance sheet. It will be the most solvent bank in the PIIGS (Portugal, Italy, Ireland, Greece, and Spain), and it has a major presence in Latin American and African growth markets. It can buy the U.S. properties of STD!

While it was recommended by a bunch of research houses these past two weeks, it is very clear that the government is laying all over the thing, and it simply isn't letting the stock lift. There is nothing else wrong with the stock. Nothing at all.

long C