Citigroup a Real Suckers Bet

Discussion in 'Stocks' started by SouthAmerica, Mar 10, 2009.

  1. .
    March 10, 2009

    SouthAmerica: Citigroup is going up today based on wishful thinking and nothing else.

    Investing on this stock it is a real Suckers’ bet – unless you are going in and out as fast as you can and you are trying to take the suckers for a ride.

    At the end of the day Citigroup is going to be completely nationalized and you are going to lose any investment you have on that stock.

    It is a good thing that the world still full of suckers – otherwise Citigroup stock would be trading at $ .10 cents per share.

    Zombie Banks and nationalization

  2. Carnaval! :cool:
  3. .

    March 10, 2009

    SouthAmerica: The US stock market is becoming more Pathetic by the day – when the entire market rally based on a memo from Citigroup with few pieces of information and we still have almost a month to go in a deteriorating market to complete that figure before the first Q’09 figures are reported to the public.

    Wall Street is becoming insane and people are trading based on garbage information and these people deserve to lose their shirt for being so stupid.

  4. Cachaca! :)
  5. Cesko


    Get short feed on suckers.

    The US stock market is becoming more Pathetic by the day......
    :confused: :confused: :confused:
  6. huh


    I disagree with that. Citi rallying sending out garbage news that they're profitable when the stock is at $5 a share is silly. But buying a 1000 shares at even todays closing price of $1.45 and selling 10 Jan 2011 calls at the 2.50 strike at 73 bucks per contract.....why wouldn't you do it?

    Total risk is 1450 - 730 = $720 for a potentioal gain of 2500 - 720 = $1780 to hold the stock for 2 yrs. If the company survives then you make a killing if it goes to 0 you're out 720 bucks who cares?

    The rally is just based on being way too oversold, I wouldn't be surprised to retest the lows but good grief, even bears have to take profit! :)
  7. lpchad


    Thoughts on this please!
  8. huh


    Hell here's another one:

    buy 1000 shares AIG @ .42 = (1000*.42) = $420
    Sell 10 Jan 2011 2.50 strike calls at .15 each = $150

    Total cost = 420 - 150 = $270
    Potential profit = ($2.50*1000)-270 = $2230

    Yes I know AIG is probably going to 0 but if it somehow manages to survive or the company is somehow sold for more than .27 cents a share you make money.

    Most likely there's a lot of pros and lottery buyers at these levels in Citi and AIG so these two companies going to 0 isn't really something that would bother the people that are buying them right now.

    Of course thats just my assumption and I could be wrong....heck I thought giving a 300K loan to a stranger with no job was a bad idea but apparantly other people disagreed....:)
  9. Daal


    We are much better off buying banks in brazil where GDP collapsed 3.6% in Q4, the biggest plunge in 1996
    Lula will make brazil immune with his big heart

  10. Adapt or die... :D :cool: :p
    #10     Mar 10, 2009