Listen this is not some kind of pump just the truth. Citi is buying back their own toxic assets at full price. Not at .30 on the dollar but full price with the governments money. They have become the private investor through PIMCO. They book the cash and then take the asset and put it on their books with the new M2M regs at like 60% (assuming that is what M2M will allow). Let's say 300 billion repurchased that means C now has 300 billion more cash on hand plus the original assets they bought back that was valued at 90 billion is now on their books valued at 180 billion. So in a nut shell C (assuming we are working with 300 billion) now has 300 billion more cash, and their toxic assets are now worth 50% more on paper. This is what is happening and you can bet your bottom dollar on it. Why do you think the gov. converted into common because they know C will hit 100 on this news and they would recoup the original investment(if you include their investment of the toxic asset).. Brilliant move Geithner and Obama make Wall St. pay in the end.. Crazy but I think this is true. Again, all JMHO
MM's IMO want C to fly(make serious money selling into rally and re-shorting it afterwards) ...this is an opportunity to push financials up fast & hard...MM's don't make the trend they ENHANCE TRENDS up or down....M2M annulement IMO will give financials a BIG boost that MM's will jump onboard and push....I could be wrong...we will find out in 2 days...
don't know about 50 in the near term....
but, data sentiment news positive all around and momo is building.... I am all in!!!! :) sitting back to watch the green turn greener by the day.... shorties are upset!
Free, I don't want to seem like i'm knocking the work you put into this. However,you know there's big money on the sidelines chrunching numbers around the clock so why haven't taken C for a ride yet?
One thing consider how the market will value what C 'shows' on paper, at least near term. Although it will ensure C survivability and a chance to get it's footing back and eventially get back to where it was, it will not really hit home until this is tansferred over to dividends that shareholder can actually benefit from. Never the less, near term there should be enough buyers on just the prospect of this to give it a little boost I think.