R/S are usually bad becasue the company does so under the weight of a collapsing share price fueled by a failing business and declining fundamentals.
In Citibank's case the R/S is being done as a means to reduce a massive share count.
It will have no negative effect on the fundamentals of the firm. If you believe that C's prospects are good, then buy, if not sell.
The reduced share count is actually a positive in that it a> opens up new buyers who can only buy when the stock is over $5 per share and b> those that are required to buy dividend producing stocks. The reduced share count enables Citibank to increase dividends next year from 1 cent to at least 50 cents. This would still be only 1%, More importantly it would get on the increasing dividend list one quarter earlier-.
yea, 50 cents a share with the dilution is like 5 cents a share..You would have to own a ton to make any real money example 2000 shares today
200 shares in May...at 50 cents a share...you are making 100.00 bucks.. Perhaps you will be able to pay an electric bill with it... Those upper levelo managers of the past really scammed the investors and then pledged incompetence when their feel were put to the fire...amazing I tell ya...