The posts on this board are simply insane. Shorts here are either too angry at CITI to see the truth, or are just moronic bashers.
So practically everyone knew ahead of time (or guessed) that the offering had to be lower than the share price when it was announced. Immediately that started a wave of short selling. Short interest has grown huge the last few days (over $2 Bil). The intent of these shorts was to wait and cover via the offering, which supposedly was struggling to attract enough interest.
NOW - we find out today that the offering was 17x oversubscribed, and CNBC and the rest conveniently left this part out of their reporting. This means that there are a TON of desperate shorts out there who were not able to cover today in AH. Tomorrow pre-market is when the buying and remaining short covering will begin, as the offering is now over. But, anyone who would sell most likely already has. There are simply not enough shares to let everyone cover.
Just look at the charts of BAC & WFC when their offerings went through. Shorts immediately want to cover, and the price is driven way back up again. In CITI's case the bounce will be even larger, as SO MANY shorts got involved in this.
I wouldn't be surprised at all to find out that this was the plan from the start. A major squeeze combined with the Govnt selling freeze and an announced stock repurchase plan could easily bring C back above $5, instantly negating the need for a reverse split and enabling major funds to buy, buy, buy.
If I was short, I would not be sleeping tonight. Good luck...
My problem with your post is C just has TOO many outstanding shares.. way too many... a reverse is imminent, just get used to that, I don't think it will be taken negatively when it happens. You should want the reverse too.
what I'm most concerned about is a potential RS at any moment..
guys we're looking at a 1-10 reverse split here, the board has authorized it already and that they have until June 30th to put it through as you already know. It's something that's important to closet indexers though why that is, I can not explain. However, and IDK if it's a cosmetic issue because hey! It sounds a lot better to say your earnings power is $4 than .40 cents.
I just don't fucking get it, a simple announcement of citi, such as: NO RS is looming, is guaranteed to surge the stock.. why don't they announce it? even temporarily! it's gonna pump up the stock and shareholders will regain some of that "trust"
I think they want to wait until some stability is present, specifically until after the USG is out completely. I also think that they are still hoping for the stock to stay above $5 for more than juts a couple days, because then it will finally attract fund buyers.
They certainly don't NEED to do a reverse split, and if they did all they would need would be a 2/1, not a 10/1. Considering the general negative connotation that a reverse split brings, I would think they'd rather go the route of a slow stock repurchase plan instead. Of course, that will have to wait until next year sometime. They could still announce the plan and in the process get us up over $5 pretty easily...