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Is Bloomberg Trying To Start Shit With Meredith Whitney?

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Don't want to jump to any conclusions here, only asking because that seems to be the case with today's essay entitled "Whitney Falters in Trying to Repeat Success of Citigroup Call."

Yes, she had her bold call on Citi in October 2007. But is she really as great as she makes herself out to be? Bloomberg isn't so sure. Yeah, they know the Dollar Domatrix persona she gives off. They've seen it just like everyone else. And you know what? They're still skeptical. Why? Numbers have been crunched.

Since Whitney founded her own firm last year, about two- thirds of her picks have fared worse than market indexes. Missed calls include Visa Inc., the payments network that fell 14 percent after Whitney called it her “single best buy,” and credit-card issuer Capital One Financial Corp., which tripled after she urged clients to sell.

And there's the fact that she didn't make some list.

Even the best-performing Wall Street firms and individual stock pickers failed to predict the fall and rise of most big financial stocks, according to rankings in the November issue of Bloomberg Markets magazine. New York-based Goldman Sachs Group Inc. won the No. 1 spot by making 30 accurate calls on the 79 financial stocks its analysts follow. KBW Inc. analysts, including Sanjay Sakhrani, ranked second. Whitney didn’t make the list.

Plus this business.

Clients who took Whitney’s advice on April 1, 2009, to sell Citigroup, the company that cut its dividend 11 weeks after she said it would, missed out on a 46 percent gain. The S&P 500 returned 45 percent and the financials index 61 percent.

Of course, try asking the 'berg about the trash talk and they'll insist they're not trying to start shit and probably even mention something about Meredith Whitney being a friend of theirs. And that's what they better say--knowing what happened to the last mammal to question her.


Meredith Whitney: Citigroup Should Just Give Up

Earlier today, we wondered if, in light of the news that Vikram Pandit had resigned as CEO of Citigroup, analyst Meredith Whitney's opinion of the bank had changed. Choice comments that Whitney has made about the Big C in the past have included: "Citigroup is in such a mess Stephen Hawking couldn’t turn this company around"; "Citi is like an old broken-down Victorian house"; and Citi “has no earnings power, isn’t going to grow, hasn’t been investable in four years." She also once told Maria Bartiromo that the only way she'd change her mind about company would be if she received "a new brain." Still, sometimes analysts change their tune when new blood is brought in and, like former FDIC chair Sheila Bair, perhaps some of her beef with the bank had been a personal dislike of Uncle V. Now that he's gone, is she seeing Citigroup in a new light? Not so much, no. In the wake of CEO Vikram Pandit‘s surprise departure this morning, Whitney, founder and CEO of Meredith Whtney Advisory Group LLC, issued a note cautioning clients to be wary of Citigroup even under new leadership. “Citigroup is ‘the incredible shrinking bank,’ and the least interest of the big four, in our opinion,” Whitney said. “No CEO will be able to change these facts in the near-term. It appears the board feels the same way, as they have appointed an unknown to the outside to the new CEO position, Mike Corbat.” [...] On Tuesday, the stock has wavered between gains and losses on heavy trading volume in reaction to Pandit’s resignation. Shares are up 29% this year through Monday’s close. Despite signs of incremental improvement, Whitney isn’t backing down from her bearish stance. “Any seat in Citigroup’s court should come with a warning label,” Whitney says. Meredith Whitney: No CEO Can Fix Citigroup [WSJ] Earlier: Meredith Whitney Cannot Stress Enough How Little She Thinks Of Citigroup

Meredith Whitney Is Returning To Her Roots

Running a hedge fund is out, making Citigroup wish it had never been born is (back) in.