We just had a grease and oil change on an 11th hour BS deal leaving us holding our nuts with nothing we could do till at least pre hours and be then all the insiders had it down to 1.50 or so.
This was courtesy of CHity bank and the BO goons. They then let it bleed all day and did not come out and say a word.
Now Monday comes and people are still stewed and they let the media bash it to sh*t.
This is a calculated move by City and the preferred so that they can sell those preferreds at over at top dollar
Guess wha?. It will be 70 to 90 cents and later in the week hedgies come in after selling all the preferred and buy it dirt cheap
Someone once told me when there is blood on the streets to buy.
Now the question is how much blood.
This thing will be destoyed by the media on Monday and Tuesday roller coaster on Wends and shoot up after the D word passes
I cant see anyone buying this until Thursday after all the fear has passed. Unless you want to make a few bucks as it falls and goes up a few cents, but it is off my radar
Learn from a short and make some money
Westgate and Fraud: What You Need to Know
Saturday February 28, 2009, 12:08 pm EST
Yahoo! Buzz Print Related:American International Group, Inc., Citigroup, Inc., General Motors Corporation
This week, while investors focused on the government bailout of AIG , Citigroup and General Motors , the post-Madoff crackdown on investment fraud continued.
Symbol Price Change
AIG 0.42 -0.10
From FBI Fraud Probe Aims at Westgate: Reports:
James Nicholson, who heads investment firm Westgate Capital Management, was arrested by Federal Bureau of Investigation agents on charges of alleged securities fraud stemming back to 2004. Separately, Paul Greenwood of Greenwich, Conn.-based WG Trading Co. and Stephen Walsh, of Santa Barbara, Calif.-based Westridge Capital Management, were also arrested for what could be a $550 million financial fraud. Mark Bloom, a former associate of Greenwood and Walsh, was arrested in another separate case, according to the FBI.
Nicholson apparently told investors he had $600 million to $900 million in assets under management, while the actual amount was closer to $100 million, according to a complaint by the Department of Justice. While he marketed his funds as having returns that were almost always positive, the actual results were much lower, the Justice Department alleges.
Nicholson's alleged scheme unraveled after the Bernard Madoff scandal came to light and several investors made redemption requests, authorities said. About two dozen received checks for a total of $5 million, but all of them bounced, the Justice Department said. Others attempted to redeem over $10 million without success.
The Justice Department arrested Nicholson, 42, at his home in New Jersey on Wednesday and charged him with securities fraud and bank fraud.
Greenwood, 61, of North Salem, N.Y., and Walsh, 64, of Sands Point, N.Y., were charged with conspiracy, securities fraud and wire fraud. The FBI alleges that from at least 1996, the duo ran a "fraudulent commodities trading and investment advisory scheme," which secured investor funds by marketing a "conservative trading strategy" that had outperformed the S&P 500 Index for more than a decade.
Read the full story.
This FBI probe follows the Securities and Exchange Commission's recent charges of alleged "massive" fraud by R. Allen Stanford.
There was one thing I learned in school that stands out. That is negative press. Theneg press alone will get this to less then 1.00. As soon as you factor in all the other tangibles I read, and none good. I figure .65 this week isnt far away
The only high you will see on this stock is the 1.50 price and that will be the first pre hour trade.
Right down to .50 from there. Then I am loading up.......... on thurrsday afer dilution
I have been a teller ther to long word gets around
You are all wrong. Think about what the government ownes... yeah common. and they will have to step in again this falls again creating another panic
Are you smoking something?
Midnight deal you cant sell till the market opens or pre hours, anounce the 5.00 preferred thing now 3.25, no good press and even worse on mon and tues a and dont expect any until dilution. You lose they take your cash and now the prefers get their cash and then buy up the common. at dirt prices. Now isnt it logical to wait this out not to mention the bad taste this left in everyone mouths from last week.
One thing that clearly went over everyones head was that little run off thurs. I bet you didnt notice? That was all the insiders who knew about this midnight deal selling their common and holding preferred. Put that in your pipe and smoke it
but the preferred get converted to common at $3.25 so isn't that good for the common share holders? i am not very familiar with the intricacies of all this - please explain your view point in tutorial fashion if you don't mind...
No No No
These guys are locked in. They want this to go as low as possible then they sell at the locked in price and get this at the bottom step and make out on everyone. That was why City proposed that 5.00 deal in the first place. Think about it
I hope that friday was the end of the beginning.
Is the extra step with the goverment now gonna see it CITI's
way and pay 3.25 for the initial shares?
Citi will exchange common stock for up to $27.5 billion of its existing preferred securities and trust preferred securities at $3.25 a share. The U.S. government will match this exchange up to $25 billion at the same conversion price.