actually i have to correct a mistake i made, its not a quarterly dividend rate its an annual dividend rate. yea you will get the full dividend if u hold for a year, if you hold for half a year you will get half the dividend. so a 100 shares for a year = 128 bucks, half a year = 64
bucks
just so you know im not playing citigroup so i havnt looked into them.
Well that shines a different light on the subject... but I am still gonna build up my shares on bac.. from what I can gather the Chairman is on the hot seat between the acquisition of Nationwide and how he handled Merrill Lynch so he has to get on the ball...I think your right about Bac on the long haul...Citi and bac has been going up and down from .60 to $1 daily so i been trying to work it...the feds say if Citi next report goes -20 billion they are gonna nationalize them.. I been with Bac for a long time....I thought it would be cool to use their money to make some for me... but I really not a big risk taker....mean while I have $14,000 in sirius @ .40 so I guess I really am..
Anyway Thanks for the Input...and we will see what tomorrow brings...I will be around and we can compare notes thru out the day...Good Luck Tony
some recent news on citi
Posted: 2009-01-26 22:24:49+05:30 IST
Updated: Jan 26, 2009 at 2224 hrs IST
New York: Citigroup has sold government guaranteed bonds worth $12 billion, which will help the beleaguered entity to boost its balance sheet.
The Financial Times has reported that Vikram Pandit-led Citi has sold “$12 billion of government-guaranteed bonds, the largest issuance since the US authorities agreed to backstop financial companies’ short-term debt in November”.
Further, the daily noted that the issue surpasses a $10 billion offering by General Electric as the largest bond issue to be guaranteed by the Federal Deposit Insurance Corporation as part of the government’s efforts to help the financial sector.
How do you think this will affect tomorrows stock price!
Last edited by Sworntwofun; 01-25-2009 at 10:08 PM.
While the Administration is getting its lipstick ready, I would like to suggest dramatic policy change that would jumpstart private investment in our banking and insurance systems. The Treasury, FDIC and Federal Reserve should raise the strike prices on the warrants they received for TARP and other programs to the estimated value of these companies in normal times. If a conservative estimate of a shrunken Citigroup (C) in normal times would be $20 per common share, investors would know the government would not dilute until the shares reach that level. Above that level it would be an opportunity for Citigroup to raise capital from whoever bought the warrants from the government. This would end the fears of nationalization and cause a short squeeze as the shorts attempt to cover. Moral hazard on the shorts – what a concept!
Raising the government’s strike price would do more to prevent short raids and build investor confidence than restoring the uptick rule and temporary bans on short selling. I think that it would be even more powerful than the mortgage loss backstops that were provided to Bank of America (BAC), Citigroup and to a lesser extent JP Morgan (JPM).
The Treasury, Fed and FDIC did consider open market common stock purchases to raise Citicorp’s stock price and improve confidence during the last rescue. But they determined that the amount required to move the market would be equivalent to nationalizing the company.
The Shock and Awe of Government Raising Citigroup Warrants Strike Price To $20Originally Posted by trippingthespeculatingpos
Jan 25, 2009 04:03 PM
BAC looks really good at the open for tomorrow, Monday, @ 6.20. I don't see it falling out of the gate.
Bill, what about this news about Citi? By the way how was your weekend?
yea me neither bill thats why im thinking i might make a move on gtxo or ctgi
FORD is ready for another loss tomorrow.
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