I have a large position myself in C, and been thinking about adding at these lows. The govt aint going to let C go under after the billions of dollars they spent keeping it afloat. Why arnt people as bullish on Oil and steel? China is said to outpace oil and other resource consumption than the US in a few years, if they havn't already and these steel and oil stocks are very low right now. X, AKS, STLD, FCX, and others are at great buys for long term players. Kon
Oh for those of you that think the government is going to keep citi afloat...try to remember its an election year.
You are standing at the craps table and betting the shareholders in the regional Federal Reserve banks prefer to have their assets as shares in Citi or prefer to take the assets for themselves. ( I would bet Citi is being looted as we speak .) If the other Fed shareholders do prefer to have Citi's assets for themselves... expect to have the the Fed announce an accounting problem (perhaps a hidden upside down position) and decide to transfer Citi's remaining good assets and some tax payer cash to some other group - or institution.... Like JPM or One west... it will happen in a flash with staged news conference showing a bit of panic. You just saw how BofA got to feast on ML. You have seen JPM get large asset transfers in the past. Its all a craps game right now. When your system is crony capitalism you have to join the cronies or guess their next move.
d'oh! it is down six cents, huh. hahaha. that is pretty funny, eh. what a moron i am. you sure got me on that one. next contestant.
i think it's a pretty safe bet the "government" isn't going to be selling off it's stake in C any time this presidency seeing as how this is obama's baby.
C reminds me of when my roommate, a schoolteacher who never bot stocks, bot some LU at $3. Widely known stock, under $5, and after a big decline . . . it's nearly irresistable to some people. But at $110 billion, it's not exactly cheap. And it's not the same C . . . it sold half the brokerage to MS, sold plenty of other assets. So not only did the shares explode but the revenue imploded. After the reverse, it'll probably lose half it's value, just like AIG. It's not half as cool to own 2200 shares as 22000.
OPEC has said they won't let oil go below $70 per barrel. It looks like, so far, they are keeping their word. That isn't exactly bullish though. Only bullish if oil goes to something like $50. And that's for oil the commodity, not oil as in oil companies. http://stockcharts.com/charts/gallery.html?$WTIC Steel has been bullish if you've been watching sector/industry charts. Much more so than oil/gas companies, recently. Maybe hard to tell since today (Friday June 4th) pretty much everything was down across the board.
The USG has a set price of $10 that I believe (and do not ask me to quote this verbatim, because I would have to look at the SEC filings to back it up and I am too lazy to do that), is their break-even, or exit price, as required by their agreement with C under TARP, which their stake would be sold into the public markets, or as part of a secondary placement through GS or JPM and the like. The USG has done a pretty good job saving the US and world economy from total collapse by backing the GMs, AIGs, and other TARP banks, World Bank, EU Central Banks, and TALF companies, so rather than slamming your government for it, I'd be praising Obama for having saved your ungrateful asses and investing in your country. Or learn to speak to Chinese. They own most of the US Treasury debt now. And indirectly, your houses, cars, boats, farms, office buildings, shopping malls...and probably the entire state of California. C stock, IMHO, is the deal of the century at $4, and yeah, I am and have been buying as much of it as I can, because anyone who has studied rudimentary bankruptcy law, it does have nowhere to go but up. Just my $0.06. Idiots' opinions notwithstanding.
What are you talking about? USG's C break even price is $3.15 and every day they are selling 50m shares+ in the public market. Look at the SEC filing.