Citigroup, Inc. Message Board
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Citi is not being diluted moron shorts
those shorts know damn well pref. does not dilute common. F..uck wake up longs and don't let them feed you shyyt ,shorts know damn well but I guess educated short can run undereducated long all over the board.
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i will also call you stupid ,,,you dont think it effects the common....please...
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OK...follow me on this one...Pref. Divs. are subtracted from Net Income when calculating EPS...it's dilutive to a magnitude of $0.40/share annually. The present value of the dividends as a perpetuity is $27B ($2.16B/0.08), so if you consider that the company would need to issue 6.75B shares of stock to counteract the present value of the dividends and that the company only has 5.45B shares outstanding...its dilutive. Even at the $10.61 exercise price it still represents an issuance of 2.54B shares. No matter how you look at it...it is dilutive to common holders.
- 3 Replies to nycigllc
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You need to follow the educated I can't stress enough.
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now take your numbers and add injection of what clearly saves the banks overall bottom line subtract .40 on pref. annually and you get what??? saves the common or not?
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The $20 billion new capital will make much more than $0.40/share annually. So not only there is zero dilution, but also an earning increase.
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The government is taking twenty percent stupid.
- 1 Reply to rtreed77
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on pref. has nothing to do with common and where do you come off calling someone "stupid" where you have no idea what common and pref. is or differ . No wonder I guess dumb shorts are here also
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