Citi Under a Buck

[BlueHair]

I am seriously considering buying 1000-2000 shares of Citigroup. It's down to 97 cents a share. The government is not going to let them go out of business, and it looks like they will own about 36% of the company when they convert their shares. I know Citi is in serious trouble, but a buck a share seems like a worthwhile gamble.

[Guest]

I am seriously considering buying 1000-2000 shares of Citigroup. It's down to 97 cents a share. The government is not going to let them go out of business, and it looks like they will own about 36% of the company when they convert their shares. I know Citi is in serious trouble, but a buck a share seems like a worthwhile gamble.

Maybe. The problem is the only ones buying C are people buying it on a gamble. Who's going to buy giant blocks to hold? Without some huge institutional investors stepping in, I'm not sure what's going to drive it up; the shorts are still after it.

But then again, I'm thinking about the same thing you are, but with GE.

What's first...SP500 @ 600 or the Jazz winning their 41st game of the season?

Welcome to 1995. What time does Friends come on?

[creekster]

What's first...SP500 @ 600 or the Jazz winning their 41st game of the season?

Welcome to 1995. What time does Friends come on?

That is just not funny. Not at all.

[Guest]

That is just not funny. Not at all.

You know the scene in Das Boot when they're off Gibraltar and going down, down, down...nothing to stop them until they hit the bottom?

That's us. In the sub. We're going to have to hit the bottom, before we can blow the tanks. There is nothing to stop it now.

[Guest]

jump to the 3:10 mark and you can see me watching my 401k

[YOUTUBE]ulByRIz-f3Y[/YOUTUBE]

[RobinFinderson]

I am seriously considering buying 1000-2000 shares of Citigroup. It's down to 97 cents a share. The government is not going to let them go out of business, and it looks like they will own about 36% of the company when they convert their shares. I know Citi is in serious trouble, but a buck a share seems like a worthwhile gamble.

I think you are crazy to think that the government is going to save Citi... and GM... and BOA... and etc. There are going to be MORE blue chips going under. This is the reason the stock market can't get legs. There is zero positive news, and zero reason to think that things are going to turn a corner any time soon, and everyone knows that SOME good companies are going to die, so any new money coming into the market is purely speculative gambling money coming from people who are trying to make a quick buck, and will turn around and sell just as fast as they bought.

[Guest]

I think you are crazy to think that the government is going to save Citi... and GM... and BOA... and etc.

At this point, I don't think they'll let GM go under. It's basically a jobs program now.

Citi? We already own it - all of us.

[RobinFinderson]

At this point, I don't think they'll let GM go under. It's basically a jobs program now.

Citi? We already own it - all of us.

But what does it even mean to save these things? GM can make a lot of cars, but who is going to buy them?

You look at Citi and tell me which division is going to be profitable any time soon. One of their biggest earners has traditionally been their credit card division. Credit card debt is the other shoe which has yet to drop, and I don't hear people talking about it the way they talk about mortgages. But there are a lot of credit cards leveraged out to the max, and there is a lot of bad debt in all of that (and probably growing as more people are laid off, and living on credit), and I don't hear people talking about it, which means it isn't fully accounted for in the stock price.

Citi also has all of its wealth management departments. Now that there is significantly less wealth to manage in the world, these aren't so profitable. I'm also guessing that Madoff is indicative of a deeper and more widespread sickness in the wealth management industry.

Also, why do you think that owning Citi is good for its stock price? It may mean that Citi doesn't disappear, but I still think there is a lot of room for it to continue tanking.

[Guest]

Also, why do you think that owning Citi is good for its stock price? It may mean that Citi doesn't disappear, but I still think there is a lot of room for it to continue tanking.

Uhh...I'm not sure why you're asking me this question (on C). I don't think Citi will go under; they won't let it, because we own it. At the same time, it's possible its common stock may become worthless (more).

Ask Obama about the GM question. There's no way a newly elected D POTUS dumps the UAW out on the street in their first 100 days in office. They'll get more funding.

And no cars are being sold. No matter the make. Do you know what Toyota's numbers were off last month from a year earlier? 40%. That's nearly as bad as Ford's numbers.

[RobinFinderson]

Uhh...I'm not sure why you're asking me this question (on C). I don't think Citi will go under; they won't let it, because we own it. At the same time, it's possible its common stock may become worthless (more).

Ask Obama about the GM question. There's no way a newly elected D POTUS dumps the UAW out on the street in their first 100 days in office. They'll get more funding.

And no cars are being sold. No matter the make. Do you know what Toyota's numbers were off last month from a year earlier? 40%. That's nearly as bad as Ford's numbers.

I didn't me you personally, but rather the collective us, we the people, the government.

[Clark Addison]

I am seriously considering buying 1000-2000 shares of Citigroup. It's down to 97 cents a share. The government is not going to let them go out of business, and it looks like they will own about 36% of the company when they convert their shares. I know Citi is in serious trouble, but a buck a share seems like a worthwhile gamble.

I feel this same way. In fact, I did go out and buy some Citi stock. Not 1000 shares, just a couple hundred.

Unfortunately, I did this a month or so ago, and I bought at $3.17. Oops.

[BlueHair]

I think you are crazy to think that the government is going to save Citi... and GM... and BOA... and etc. There are going to be MORE blue chips going under. This is the reason the stock market can't get legs. There is zero positive news, and zero reason to think that things are going to turn a corner any time soon, and everyone knows that SOME good companies are going to die, so any new money coming into the market is purely speculative gambling money coming from people who are trying to make a quick buck, and will turn around and sell just as fast as they bought.

I've already acknowledged it's a gamble. I'm not looking to make a quick buck. This is a buy and hold. The upside is just too great to ignore. 2000 shares is only $2000. If things get so bad that the likes of Citi are allowed to go under, I don't think $2000 is going to make that much difference in my life. I will be holding worthless money like everyone else. I believe that this "crisis" is just as unreasonable as the stock prices were at the top. Eventually, people will settle down and realize that things are never as bad as they appear. All of this money we are printing has to flow somewhere. It doesn't just vanish. Granted, printing too much money will probably cause inflation, but my debt (mortgage, etc) is in dollars so inflation cheapens my debt. Eventually, banks will start lending again and stock will have nowhere to go but up. These types of opportunities are like hopping into a time machine and buying stock during the Great Depression.

[The Wankster]

I am seriously considering buying 1000-2000 shares of Citigroup. It's down to 97 cents a share. The government is not going to let them go out of business, and it looks like they will own about 36% of the company when they convert their shares. I know Citi is in serious trouble, but a buck a share seems like a worthwhile gamble.

Did you buy the stock?

Citi shares were up 25 percent today after they announced that they were profitable for the first Qrtr. this year.

[RobinFinderson]

Did you buy the stock?

Citi shares were up 25 percent today after they announced that they were profitable for the first Qrtr. this year.

I saw that too and wished that I had bought some. If I had, I would sell it immediately. 25% in a day? That is an irrational response to the first good news to hit the financial sector in weeks. Tomorrow it will be back to dismal jobs reports, frozen credit markets and the realization that gazillions of dollars of wealth have vanished in the space of a few months.

[BlueHair]

Did you buy the stock?

Citi shares were up 25 percent today after they announced that they were profitable for the first Qrtr. this year.

I bought 2500 shares yesterday. It actually ended up 38% today. I bought this as a buy and hold, but I think I am going to sell about 600 shares in anticipation of a profit taking selloff. I think people are pretty desperate to "win" one. If it goes down, I'll buy more. Hopefully we are near the floor and people will start to gain some confidence.