For now, it seems that the freefall that was known as Citigroup has slowed down and actually stabilized for awhile. The company whose stock price used to be around $55 a share back in 2006 is now hovering around $3.50 a share, but it’s been hovering around there for a few weeks now, even slightly improving over that period of time.

Of course we all know what brought Citigroup to this point, and we’ve seen how they’ve reacted to some of these things. Suffice it to say that Citi hasn’t inspired the most confidence in its consumers, let alone its stock holders. And yet, we just learned that Bruce Berkowitz, who manages the $11 billion Fairholme fund and was recently named Morningstar’s U.S. stock manager of the past decade, bought more than $700 million worth of Citi shares.

What’s he thinking? He says that the company is showing signs of a turnaround, even in those areas where they’d been losing a lot of money. He also said that the shares are cheap right now, and it’s a good investment in a company that seems to be on the upswing, saying that, in his opinion, right now it has the “government’s Good Housekeeping seal.”

I don’t know about this, although I did write earlier this year about how it seemed to be a good thing some days to be Citigroup because of how the government seems to be giving them all sorts of breaks as they try to recover. So maybe Berkowitz has something here.

Or maybe not. Personally, I agree that the stock price is very low, and if someone were interested in owning a piece of a bank just to see what it’s like this would be a good time to buy. But $700 million worth? Well, this guy’s done it before and survived it, so maybe he’ll do it again. If it’s me, though, I might spend my couple of hundred, then wait and see. I might, by the way, means if I were in the buying mood, which I’m not.

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