With all the good news, I do not understand why C is priced as low as it is. I have given up trying to figure it out. All I know is that I still like the stock and will continue to hang on to my October $5 Calls. I hope that options expiration (today) is holding the stock down, but who knows.
I believe next week should be interesting. Nothing, and I mean nothing, would surprise me anymore. C might end next week at $6+ or under $4.
Based on everything I know, everything I've read, and everything I feel, C goes up from here........
that said, most other stocks behave normally. on good news they go up and on bad news they go down.
C is mind boggling. it should be above 10 under normal circumstances but nobody has an explanation to what the fu.ck. is up.
I think the main 2 things holding C down is how the government is going to sell it's shares and lack of visibility on this upcoming earnings report. If C has great earnings then up she goes in spite of what the government does imo. If earnings are lousy then I think she dips and treads water until government decides how to sell shares.
I would sell my calls an just buy the stock. Come baack in two years. I wouldent put all on this stock but i have lst alot on it as it is. Just figure what you could afford to loose and just buy that. I am not saying you will lose what you put in but this is going to be a hell of a play in the short term and pandit seems like he wants to pay the fed back at whatever cost even if it costs the stock holders alot in the short term.
You have to remember a some insiders bought recently at > $5 per share. They would not have done so if they thought that the stock was really worth less than that.
S&P puts the value at $6.50 and I think most analysts put it there or maybe in the $5s. The tangible book (bankruptcy value is about $5.50) I buy more shares on declines. I think in 2 years this thing will have at least hit $8 so it will be a double for me.
The main thing holding C down is failure to garner earnings from operations. The minute you see (which will be soon) any earnings from operations this thing will fly. The reason these earnings will come soon is that the cost of borrowing for C is nil. And they loan it out at whatever.
Just remember, this stock is not going to trend up. It will fly.
As a wise old man once told me the secret to making money in a stock is you have to own it when it goes up :-)
I think this stock is held down so MMs can trade millions of shares daily because of its low price. They pay the so called analysts to pump up the stock one week and dump it the next. It will be taken up and down for at least another year until C can generate real earning. The key for retail investors like us is to figure out how to play this game as well. As for me, I'v been buying on a dip. If it dips further, I hold and wait for the next bounce and take profits, but I also have shares that I hold for retirement.