In the post above I meant to say that if I hold on to my very cheap Citi stock, and it goes up to say $50+ a share, it would be like buying Google at $85.
I understood what you were saying.
Like I said above, I woudn't recommend to anyone else to sell all their shares of Citi. I would recommend taking some profits and here's why. IMO, C is due for a correction. Also, chances are they won't be able to repeat their 1Q performance in the 2Q. The first quarter is traditionally the best quarter for banks, and even some CEO's of other banks have warned that they might not be able to match their 1Q performance.
Consider the following hypothetical example: Let's say someone bought 1000 shares of C for $1, and sold 800 at $4. That leaves them with 200 shares and $3200 cash ($2200 profit plus the original $1000 investment). Now if Citi goes back down to $3, you can buy back those 800 shares for $2400, utilizing all your profit and $200 from the original $1000. So you still have $800 in cash, plus the same 1,000 shares, which for all intents and purposes you paid $200 for out of pocket (the rest were paid for by your profits) Or instead of keeping that $800 in cash, you could buy more shares, let's say up to 265 more to stick with round numbers. That's 26.5% more shares than what you originally started with.
Now selling 800 shares would be a pretty bold move for some, but you can do the same thing selling less shares at different price points. Granted your % gains may go down, but then again so does the risk that you'll miss out if the stock continues to climb.
It really depends on what your goals are in the market. If you're in it for the long haul, it might not be worth it for you to play around like I am. If you're like me and looking to make some money now, as well as get yourself set-up for when the market recovers, you can make some moves like I'm describing above. You absolutely risk missing on some profit if C jumps, but that's the whole point of the market, risks and rewards.