Shorting CIB at this price is about the easiest money you could me. Can you imagine a Colombian bank trading at no discount to BofA or JPM? Talk about frothy!! This will see $25 before the end of summer.
as someone who actually lives in Colombia and walks into a bancolombia branch most days of the week its hard to see much direction but up.... the bank is starting to introduce more account and usage fees.. more and more colombians are getting used to the idea of credit cards and with interest rates on them at 32% pa... theres a lot of money to be made in the future.. the bank is expanding around the continent and has just played a big part in the IPO of Colombias biggest company Ecopetrol... selling over a billion in shares.... its in leasing in peru and panama.... its still consolidating its purchase of Conavi and there are a lot of cost savings to be had from branch closings.. as an example in the one mall near me there are no joke four branches of Bancolombia. Bancolombia are building a huge main office in there home city of medellin just down the road from where i am now.... expect smaller offices to close.. this bank is going to be worth a lot more than US$7 billion in a few years. buy
So, who is the dumbass who shorted CIB in August....
When you find out....send him to my house...I need my lawn cut...I assume he is in front of Home Depot every morning, looking for work....
I�m doing just fine--thanks for asking. I caught a double when CIB went down below $28. I just bought some more Jan 2008 $30 puts today. I don�t know who was buying the stock to make the puts so cheap, but MUCHAS GRACIAS!!
If you knew anything about security valuation, you'd know that the slightest little tweak to the growth estimate can dominate every other consideration. This is all about growth: CIB's annual earnings are now greater than the price I paid per share ($1.85) five years ago.
I've unlevered and even moved to 25% cash in my portfolio but am still long this one.
All the shorts who didn't get into their position until the New York afternoon yesterday are probably not too happy with how the market closed. Any position that cannot possibly generate any income apart from a price change in the security (and a short is an example) is by definition speculation, not investing.
This market swoon is different from 2000 - 2002 in that this time the problem is solely a contraction in risk appetite, not a problem with general overpricing relative to corporate profits. One day greed will trump fear again and who knows when that will be?
You make my point for me. Of course, when recession looms, you get earnings and multiple contraction. CIB didn't even bounce on Friday after the rate cut. That bodes very poorly for longs. Congrats on your huge gain in CIB. Are you really willing to give away another 30% of it?