Barron's claims that's C is selling below book....which is funny since C has no book value. Citi has greater liabilities than assets, is essentially insolvent, and needed TARP to prevent collapse. This kind of reporting is irresponsible since Barron's does not include the facts:
C is selling future earnings to other firms-case in point: Smith Barney
C has 264 billion in derivatives-much greater than the market cap of 15 bil
C's dilution has not occurred and once it does, the share price will reset below a buck-AUTOMATICALLY. The nonsense that C's price reflects the dilution is wrong:
current market cap-15 bil with 5.5 bil shares out=2.77
post conversion: 15 bil market cap won't change, but there will be 22 billion shares out:
15/22 is not 2.87----it's closer to .78
If C authorizes 60 billion shares as they want to, the dilution will be catastrophic:
15/60-----.25 or less
The reverse split will not bring the institutions back in, but rather will encourage short selling.
C is going back to traditional banking, away from asset managers, and they have no domestic franchise. Thus, C's US competitors will be able to take market share.
C's CEO is utter dunce. He screwed up the Wachovia purchase, ignored Goldman, and has basically destroyed C at the expense of the shareholders.
Pull your money out of this garbage and put it to work in smaller regionals that are growing, and have no debt.
Dilution? What happend to the shiek who wants to keep collecting his 9% on prefered stock? Just looking on the 10K in 2008 a few days ago, outside the dilution prospect C should be at near $20. Going just by the numbers on the balance sheet. What and who you can believe today is a big $ ??????????.?? The concept of 0% TARP & the multiplier effect has to be part of calculation. JMO
this company should do a reverse split so that shorts can eat them alive. Management and company are just as worthless here as at AIG & there is really no future unless you do the r/s. AIG went from $20 to $7 back to $12, what a picnic for traders, obviously this bad excuse for a company needs to go down the same path to become famous and useful again
You're obviously a naked short and as such, Obama's Stock Czar will hunt you down and through you in the hoosegow.
C's valuation is minimally $3.25 and as much as $6. Shorts will pay with their worldly possessions.
Jblue, can you answer this question:
Your girlfriend owes you $15 and she also owes a credit card $58. You want to get her off the credit card debt burden and decide to pay off the $58 in full. How much does your girlfriend own you then?
If you answer '$15', your logical above is right. If you answer '$73', Barron is right.
Well, it could be that the girlfriend will never be able to pay off the $58. In this case the credit card debt of $58 is WORTHLESS.
You might think the girlfriend now owe you $73, but if she cannot pay off the $58 in the first place, your $73 debt could now also be totally WORTHLESS.
The credit card company will think very highly you though.
LOL... what an idiot! LOL.
Makes me laugh so hard I almost fell out of my chair. I guess every companies out there is only worth its MARKET CAP? LOL...
Your logic is far from logical. First off, please take some classes in business. Maybe then you can post intelligently, so you won't make a fool of yourself!
Jblue ! are you trying to scare people one more last try with your ** simple math * again ? come on jblue ! just cover your shorts and go back to school retake basic math again, your ** simple math * are useless in this board.