Citigroup has said that its quarterly profit will drop about 60 percent because of the trouble in the subprime market and a weaker consumer business. They have also said however that they expect to return to a normal earnings environment in the fourth quarter.

As could be expected, shares of Citigroup dropped even before the market opened. I’m mentioning this as an example of the day to day news and information that affects the price of stocks. Citigroup is the largest U.S bank by market capitalization and I don’t see them filing bankruptcy any time soon.

I do see this as an opportunity to pick up shares of the company for relatively cheap. The dividend yield alone is over 4 percent. I also wouldn’t be surprised to hear various analysts talk about the stock as a great value say to pick it up while it’s cheap. Thus, the constant up and down of the daily prices. Today will most likely be a down day for Citigroup, but tomorrow is anyone’s guess.

If you see the company as a solid company, you won’t be shaken by one piece of news, and you might even seize the opportunity to buy it on sale. It would be wise to have a list ready of companies you’d like to own so when opportunities like this come along you’re ready for them. You shouldn’t try to time the market, but buying a solid company on a dip isn’t a bad strategy.

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