Based on latest reports no done deal between C and govt..govt reportedly not too excited about buying up C's bad assets --unless something gets done before mkt open I dont think we see any rally..up goes SKF
Any news that the financial community sees as favorable regarding Citibank (i.e. additional capitalization from the Treasury department or a buyout by someone like Goldman Sachs) either this evening or early tomorrow, in my opinion, causes the SKF to drop to the $ 170 to $ 180 by the close tomorrow. If any perceived positive event, as mentioned above, actually gets approved late Monday or early Tuesday, then I think that the SKF will drop to the $ 140 to $ 150 level by the close of trading on Tuesday. Wednesday and Friday will be light volume days, so the price swings could be violent, both ways. If the environment regarding financials remains positive for the rest of the week, then I think that the SKF could trade as low as $ 120 to $ 130 at some point before the close of trading on Friday.
In the long run however (i.e. out several weeks), I think that reality sets back in and the investing community once again comes to their senses and realizes what horrible financial condition America's banks are in. At that point, I think that you will see the SKF make new all-time highs, trading in the $ 325 to $ 350 level.
For disclosure purposes, I have no position in SKF at the current time. Good luck to all.
You deserve to get F'd.
Why would anybodies greedy ass take a position like that going into the weekend. Especially this weekend when we knew that things were going to happen over the weekend (good or bad). The risk reward just wasn't there to take on this thing over the weekend. Good Luck. You could always by my UYG. I'm selling it for $15/shr Wednesday at 2:59 p.m. CST.
Feds are doing a deal with Citi. If the street likes the deal Financials will rally. If the deal is delayed or unfavorable SKF will continue to climb. Some sort of short ban or rule change could happen any day. Nothing but bad news coming through Dec, so hold on. IF SKF drops big load up. This thing swings a lot.