Ouch @ Citi!

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cubiczirconia

cubiczirconia

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3.25 after hours. I have a few that I bought at 4 and didn't unload.. hopefully things will pick up later and it will all end well..

Anyone else invested in the bank? Got out at the right time? Still hoping for that mystery $21 upgrade a few months ago? Please share:-)
 
I own a ton of the crap having worked there for 24 years. Believe me, I had little choice in the matter but here we are. Nothing to do but wait and see. I held it last time it hit these levels in 1991 and it did work out. We shall see if that happens again.
 
[quote author="Cubic Zirconia"]3.25 after hours. I have a few that I bought at 4 and didn't unload.. hopefully things will pick up later and it will all end well..

Anyone else invested in the bank? Got out at the right time? Still hoping for that mystery $21 upgrade a few months ago? Please share:-)[/quote]
Rumors are that they'll do a 10-1 reverse split like AIG did. I might pick up a few thousand shares if the stock sinks below $3 and then keep selling out-of-the-money covered calls to get the basis down below $0. The stock is essentially trading at an option price and we all know that the feds will not let them fail.
 
So there is hope.. if I hold on to it for a couple of years..
USC, I have heard it too. 10-1 will be too big. 5-1 or 4-1 will be good..
 
They are having real trouble getting out of TARP efficiently. To me that means real trouble still exists (as if we didn't know that already). Wish I had bought at $1.00 in March, but we may see a sub $3.00 Citi coming IMHO
 
I've been slowly playing both sides. So far it has worked out for me. DammiT!?!?! Trojan stold my idea! LOL! well we will see how that works out. So far nothing crazy, just a few dollars here and there over the last year or so.
 
the downside in stock price seems pretty limited to me, its got nowhere to go but up, especially if holding it for 3-5 years or so. The offering price of $3.15 is essentially the floor. I cant see it going much lower than $3. I think im going to pull the trigger on C.
 
[quote author="octrends"]what if the DOW test the march 2009 low sometime in the next year. it can go back to $1 range.[/quote]
That's why you keep selling covered calls that are out-of-the-money to keep reducing your cost basis in the stock.
 
What do you think the company's value is? It has a market cap of $73B. Seems like there's plenty of room for it to fall. I don't follow the stock, have never traded it and know nothing of Citi's inner workings, but I'd like to hear some justification about it's value beyond "3 is such a small number".
 
I'll tell you, that's tough. They were forced to sell all their money making divisions (Smith Barney, Philbro, Asian European and South American banks. I am not sure if anything is left that can produce any income. The branch system? This is not a big rev generator. I for one have little choice but my cost basis is in the $2s so I either swing for the fences or hit the showers.
 
I am thinking of selling all Citi positions in Jan and reinvesting when it reaches a new low if it slides below 3. If it retains that 3, I will just hold. I have a few hundreds only, so yes, the swing hasn't brought down my portfolio.. but between C and BAC, things didn't end as I expected them to.
 
$70 billion is only a small portion of its total assets. That's the concern. If you look at their writedowns to date, they have been more than $70 billion. It's not hard at all to envision them blowing through their alleged $77 billion market cap.
 
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