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so citibank will drop to $2 and we can go in and buy?
goondoo ( Date: 21-Nov-2008 08:47) Posted:
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Most likely scenario is Citigroup gets nationalized like AIG, where current shareholders get wiped out, US govt step in to take 80% or 90% of citigroup shares through new issue at maybe $2 per share.
Current Citigroup share price is already reflecting almost a 100% chance of above happening, but it takes time to fall to $2 range, as stocks usually drop max 20% to 30% a day. $2 would be a good entry point for Citigroup, unlike AIG which may wind up a few yr later, think Citigroup may survive long term and slowly gets privatised again 10 yr later, when US govt reduce their 80% stake.
$2 Citi shares may become $6 or even $10 again in 10 yr time.
dcang84 ( Date: 21-Nov-2008 08:40) Posted:
| No they won't.There are other measures they can resort to. The question is will they do it. |
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Hehe. Exactly.
Read between the lines of what Paulson is doing recently.
goondoo ( Date: 21-Nov-2008 08:47) Posted:
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Most likely scenario is Citigroup gets nationalized like AIG, where current shareholders get wiped out, US govt step in to take 80% or 90% of citigroup shares through new issue at maybe $2 per share.
Current Citigroup share price is already reflecting almost a 100% chance of above happening, but it takes time to fall to $2 range, as stocks usually drop max 20% to 30% a day. $2 would be a good entry point for Citigroup, unlike AIG which may wind up a few yr later, think Citigroup may survive long term and slowly gets privatised again 10 yr later, when US govt reduce their 80% stake.
$2 Citi shares may become $6 or even $10 again in 10 yr time.
dcang84 ( Date: 21-Nov-2008 08:40) Posted:
| No they won't.There are other measures they can resort to. The question is will they do it. |
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I dun think they will go burst.
Worst case, Gov step in like what goondoo said. They had forecast their loses in 2009 to be abt 20billions. So the lookout for them is not good. But given their brand, after this crisis is over, they will have potential to be a make u rich if u gt the money to buy them when they are so low n can hold it for a few years.
4.71 looks cheap but I am very sure lower low can be achieve. Lets wait together..hehehe
Most likely scenario is Citigroup gets nationalized like AIG, where current shareholders get wiped out, US govt step in to take 80% or 90% of citigroup shares through new issue at maybe $2 per share.
Current Citigroup share price is already reflecting almost a 100% chance of above happening, but it takes time to fall to $2 range, as stocks usually drop max 20% to 30% a day. $2 would be a good entry point for Citigroup, unlike AIG which may wind up a few yr later, think Citigroup may survive long term and slowly gets privatised again 10 yr later, when US govt reduce their 80% stake.
$2 Citi shares may become $6 or even $10 again in 10 yr time.
dcang84 ( Date: 21-Nov-2008 08:40) Posted:
No they won't.There are other measures they can resort to. The question is will they do it.
tchoonw ( Date: 21-Nov-2008 07:54) Posted:
| Citibank drops to US$4.71...doesn't look good! will it go burst? |
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No they won't.There are other measures they can resort to. The question is will they do it.
tchoonw ( Date: 21-Nov-2008 07:54) Posted:
| Citibank drops to US$4.71...doesn't look good! will it go burst? |
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Citibank drops to US$4.71...doesn't look good! will it go burst?
