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Bancolombia S.A. Message Board

  • rbotterb rbotterb Jan 4, 2007 7:33 PM Flag

    Interesting Friday Coming

     

    Given the big downside in the afterhours trading, I suspect that CIB could be in for a difficult Friday of trading. As more and more news is coming out on this, it looks like many folks are doing the panic and run for the exit routine at the moment.

    Of course the market makers are going to 'take advantage' on the sells. At this point they are seriously exposed for the next couple days as the buyers of last resort. If this panic in after hours becomes a panic at the Friday open in the US markets, they will quickly get hit hard by the sellers and will have to adjust CIBs price quickly to keep from getting covered in red ink themselves.

    CIB has at least made a follow up announcement afterhours to try and distance itself from the actions of the CEO and VP. I'm not sure everyone will catch that distinction tonight and act that way in the morning, but those with CIB positions will have to hope they understand that fine point.

    And of course we are also seeing some yahoo postings from those who want to scare things up a bit to allow for a bear raid on CIB the next couple days. Your going to have to get used to them for awhile CIB longs. This is a messy situation and it may take a while before all the dust settles on it and any strong support of CIB prices develops.

    For now I'm definately waiting for awhile before dipping my toes in these waters again. With all the news hitting the wire, whatever TA tools I have will be of limited use as the emotions of the market run their full course.

    Good luck to those still long CIB. Hopefully you won't get too bloody in this downdraft. Also, it looks like some of you will have to temper those predictions of CIB going into the 40s or 50s soon. With this news hanging over this stock for awhile and some folks feeling bitten at the moment, it may take awhile before the market feeling comfortable with this company and returns CIB to any new rally phase.

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    • rbotterb -- you seem to be a nice guy but I hate to say this: your TA tools have never worked. Didn't you short this stock in the very low 20s. Just sit tight and this whole thing will blow over. I had a bank stock where the CEO was indicted for fraud which proved to be the catalyst for the selling the bank at a pretty good premium, since the bank was still solid but absent the CEO.

      • 2 Replies to rispleen
      • Here the scenario is a little bit different: Not only the CEO is accused of being a con man, he was being held accountable for his con methods to establish this bank in first place.

        The news out is like this:

        There used to be two banks in Colombia: Industrial Bank of Colombia and Bank of Colombia

        The smaller bank Industrial Bank of Colombia purchaged the bigger bank "Bank of Colombia" through fradulent means.

        This is what I read in Spanish:
        "Hay raz�n suficiente para acusarlos por los delitos de estafa y utilizaci�n indebida de fondos", confirm� el Fiscal Mario iguar�n en entrevista con La W Radio.

        Translated:

        The Attorney General said: "There is sufficient reason to accuse for fraud and use of illegal funds".

        Interesting Friday comes or not, the accusation is serious in nature.

        If this accusation is for acquiring Bank of Colombia, it looks serious.

 
CIB
49.14+0.47(+0.97%)Dec 19 4:06 PMEST

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