Whos buying CITI at 99 cents?

I had to grab something quick to eat in the car this afternoon, and I had to decide between Citi and a snack off the dollar menu at McDonald's.

I went with the McDouble. Much better value as I got something for my money.

I usually don't eat fast food, but damn if that McDonald's drive thru wasn't jam packed while all the sit down restaurant parking lots were empty everywhere.

McPression!

 

who's buying C at 99c?

not the US taxpayer as he is paying more than 50 dollars per share (bailout money divided by number of shares)

 

The real question is who would be shorting at .99? The upside on buying at .99 is it has more room to run than shorting at this point. It is not a bad buy if you plan to sell at the next rally... say when they suspend m2m or something like that. This thing can easily run to $3 in a heartbeat.

 

Shitty is as insolvent as the definition gets.

It will be nationalized. Bank it.

 

Eventually we'll have to do the right thing. Take over, slice up, sell off and close down. I would imagine they'd spring this on a friday afternoon at 4:00 or so. It'll be hard to find buyers for all the slices of BAC and C at the same time, but if they just did C, everybody would bail on BAC and make it even worse.

I wonder if they'll do it this weekend?

 

I agree with you long term. Short term though anything can happen. You are forgetting that the government does not have the number of people to do this right now and they can't just do Citigroup alone. Citigroup is not an investment vehicle anymore though. Pure speculative play (short one at that). Period.

 

They also have to be careful to not let people know they were about to do this. But careful observers would be aware, and the stock would tank to under a dollar. Hmmmm. . . .

 

There is no doubt that the government is lining up personnel to take over Citi as we speak; a massive undertaking.

Or that they'll announce the nationalization on a Friday market close.

I agree.

 

I just bought some. However, it's most likely a GTZ.

 

Probably going to eventually short BAC as a hedge on this play. Either way I am not going to lose much money if I am wrong. One session at the poker table is more risky than playing these POS stocks at this level.