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Citigroup Inc. Message Board

  • LemurFox LemurFox Dec 16, 2009 9:47 PM Flag

    The very definition of a short squeeze tomorrow...

    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...

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