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  • Citibank: How To Survive A Lost Decade

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    Citibank's pick of stocks that will outperform if the U.S. enters a lost decade, much like Japan over the past 20 years.

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    Citibank: How to Survive a Lost Decade

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    Citibank's pick of stocks that will outperform if the U.S. enters a lost decade, much like Japan over the past 20 years.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    500 views17 pages

    Citibank: How To Survive A Lost Decade

    Uploaded by

    Eric Platt
    Citibank's pick of stocks that will outperform if the U.S. enters a lost decade, much like Japan over the past 20 years.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 17

    How to survive a lost decade

    BUSINESS INSIDER

    LOST DECADE (NOUN)


    lost decades are extended periods of weak, if any, real economic growth. many believe developed economies could be at the start of a lost decade as governments, consumers and financial institutions deleverage.
    CITIBANK

    SOURCE: CITIBANK

    CITIS FOUR PRINCIPLES FOR EQUITY INVESTMENTS


    PICK STOCKS THAT HAVE:

    DE-EQUITISATION
    focus on companies that are retiring equity, buying back shares or posting large dividends to share holders

    PRICING POWER
    focus on companies that have the ability to set pricing, pass them on to customers, and who will not face blow back

    EMERGING MARKET EXPOSURE


    focus on companies that are not dependent solely on developed markets

    GROWTH AT A REASONABLE PRICE


    focus on companies that have reasonable valuations and solid growth prospects, a mix of value and growth investing

    SOURCE: CITIBANK

    The U.S. companies Citi believes are best positioned for a lost decade:

    WELLPOINT INC.
    Play: De-equitisation
    Sector: Health Care Free Cash Flow Yield: 8.8% Market Cap: $25.8 billion

    SOURCE: CITIBANK

    DELL INC.
    Play: De-equitisation
    Sector: Computer Hardware Free Cash Flow Yield: 17.3% Market Cap: $26.0 billion

    SOURCE: CITIBANK

    TARGET CORP.
    Play: De-equitisation
    Sector: Retail Free Cash Flow Yield: 9.9% Market Cap: $34.5 billion

    SOURCE: CITIBANK

    TEXAS INSTRUMENTS
    Play: Emerging Market Exposure
    Sector: Semiconductors Free Cash Flow Yield: 8.0% Market Cap: $36.2 billion

    SOURCE: CITIBANK

    TIME WARNER INC.


    Play: De-equitisation
    Sector: Media Free Cash Flow Yield: 10.8% Market Cap: $37.1 billion

    SOURCE: CITIBANK

    COMCAST CORP.
    Play: De-equitisation
    Sector: Media & Telecommunications Free Cash Flow Yield: 14.8% Market Cap: $46.3 billion

    SOURCE: CITIBANK

    UNITED HEALTH GROUP


    Play: De-equitisation
    Sector: Health Care Free Cash Flow Yield: 12.1% Market Cap: $50.9 billion

    SOURCE: CITIBANK

    AMGEN INC.
    Play: De-equitisation
    Sector: Biotechnology & Drugs Free Cash Flow Yield: 10.2% Market Cap: $53.3 billion

    SOURCE: CITIBANK

    HEWLETT-PACKARD CO.
    Play: De-equitisation and Growth At A Reasonable Price
    Sector: Computer Hardware and Software Free Cash Flow Yield: 14.2% Market Cap: $59.1 billion

    SOURCE: CITIBANK

    QUALCOMM INC.
    Play: Emerging Market Exposure
    Sector: Information Technology Free Cash Flow Yield: 6.2% Market Cap: $95.3 billion

    SOURCE: CITIBANK

    MICROSOFT CORP.
    Play: De-equitisation
    Sector: Computer Software and Programming Free Cash Flow Yield: 12.6% Market Cap: $203.1 billion

    SOURCE: CITIBANK

    INTERNATIONAL BUSINESS MACHINES CORP.


    Play: De-equitisation
    Sector: Computer Services Free Cash Flow Yield: 8.8% Market Cap: $226.9 billion

    SOURCE: CITIBANK

    BUSINESS INSIDER
    MONEY GAME businessinsider.com/moneygame

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