# Buy Citi tomorrow



## DavidS (Nov 23, 2008)

According to CNBC, the government is injecting $10-$20 billion in cash into Citibank. That should send Citi shares SOARING tomorrow.

Government to Make Equity Infusion into Citigroup - Stock Market * US * News * Story - CNBC.com


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## dilloduck (Nov 23, 2008)

DavidS said:


> According to CNBC, the government is injecting $10-$20 billion in cash into Citibank. That should send Citi shares SOARING tomorrow.
> 
> Government to Make Equity Infusion into Citigroup - Stock Market * US * News * Story - CNBC.com



and all this corporate bailout is fine with Obama ?


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## xsited1 (Nov 23, 2008)

dilloduck said:


> and all this corporate bailout is fine with Obama ?



Obama and his supporters can always blame Bush.


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## DavidS (Nov 23, 2008)

Please don't bring politics into this thread. There are other threads to discuss that. This is about shares of citigroup and the speculation on how much it'll rise tomorrow.


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## dilloduck (Nov 23, 2008)

DavidS said:


> Please don't bring politics into this thread. There are other threads to discuss that. This is about shares of citigroup and the speculation on how much it'll rise tomorrow.



Fuck the speculators. Short term shit only serves to detract from the larger problem.


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## tigerbob (Nov 23, 2008)

DavidS said:


> Please don't bring politics into this thread. There are other threads to discuss that. This is about shares of citigroup and the speculation on how much it'll rise tomorrow.



There is money set aside in the TARP specifically for this purpose (I think it's $250bn), so it seems to me that a cash injection for a bank is an appropriate use of those funds.  That said, I hope Citi use the funds appropriately.

Either way, I suspect you're right - people will make money on Citi tomorrow.


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## DavidS (Nov 23, 2008)

dilloduck said:


> Fuck the speculators. Short term shit only serves to detract from the larger problem.



Dude, nothing wrong with making a little bit of money. If I invest $10K in citi at $3.77, I get 2600+ shares. If the price rises to $10/share, I make nearly $20,000. Then I sell it at the end of the day and take my profit in.


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## dilloduck (Nov 23, 2008)

DavidS said:


> Dude, nothing wrong with making a little bit of money. If I invest $10K in citi at $3.77, I get 2600+ shares. If the price rises to $10/share, I make nearly $20,000. Then I sell it at the end of the day and take my profit in.



Right---that's what all the CEOs and failing financial "wizards" are saying !!



> Dude, nothing wrong with making a little bit of money


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## tigerbob (Nov 23, 2008)

dilloduck said:


> Right---that's what all the CEOs and failing financial "wizards" are saying !!



Are you arguing for the suspension of trading in Citi shares?  It doesn't sound like you.


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## dilloduck (Nov 23, 2008)

tigerbob said:


> Are you arguing for the suspension of trading in Citi shares?  It doesn't sound like you.



Apparently everyone loves to gamble on stocks. It's a great game for insiders. The problem is that we are already bailing out people who were basically nothing but gamblers who hoped they weren't stuck holding the "old maid" when the game was over.


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## tigerbob (Nov 23, 2008)

dilloduck said:


> Apparently everyone loves to gamble on stocks. It's a great game for insiders. The problem is that we are already bailing out people who were basically nothing but gamblers who hoped they weren't stuck holding the "old maid" when the game was over.



OK, I'm with you.

My wife perhaps unwisely decided to buy $1000 GM stock a few weeks ago - it's now worth half that at best.  I shall tell her she's an Old Maid, and will be ready to duck.


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## DavidS (Nov 23, 2008)

HOLY SHIT!

US to Guarantee Over *$300 Billion* in Citigroup Assets


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## tigerbob (Nov 23, 2008)

DavidS said:


> HOLY SHIT!
> 
> US to Guarantee Over *$300 Billion* in Citigroup Assets



Oh for fuck's sake.  OK, I take back my earlier "at any price" comment.  That's why Asian stocks are up.  Citi has got itself not so much a golden parachute as a golden trampoline.  $300 bn is more than the entire figure set aside in the TARP for the financial sector.  This could open the floodgates.


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## DavidS (Nov 23, 2008)

tigerbob said:


> Oh for fuck's sake.  OK, I take back my earlier "at any price" comment.  That's why Asian stocks are up.  Citi has got itself not so much a golden parachute as a golden trampoline.  $300 bn is more than the entire figure set aside in the TARP for the financial sector.  This could open the floodgates.



Actually, TARP was supposed to be $700 billion. We've spent $350 billion, $25 of that $350 billion was given to citigroup earlier in the year. We've now given them $20 billion additional. The guaranteed debt is somehow being guaranteed by the FDIC. I'm not sure how that works.


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## tigerbob (Nov 24, 2008)

DavidS said:


> Actually, TARP was supposed to be $700 billion. We've spent $350 billion, $25 of that $350 billion was given to citigroup earlier in the year. We've now given them $20 billion additional. The guaranteed debt is somehow being guaranteed by the FDIC. I'm not sure how that works.



Yeah, I know TARP is $700bn, but of that figure $250bn was the amount for the financial sector.  That was the figure I was referring to.

And I have no idea how the FDIC works this either!


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## DavidS (Nov 24, 2008)

tigerbob said:


> Yeah, I know TARP is $700bn, but of that figure $250bn was the amount for the financial sector.  That was the figure I was referring to.
> 
> And I have no idea how the FDIC works this either!



The whole damn thing is to bailout the banks. We're not getting a dime of that.


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## NOBama (Nov 24, 2008)

Whoever bought the 12,800,200 shares of C at the closing bell on Friday will be a happy camper today. If it was me, I'd sell that pig today because, the entire 700B$ bailout allotment wouldn't be enough to save this POS, IMO.


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## NOBama (Nov 24, 2008)

Now that I think about it, maybe it was Paulson on that 12.8M share buy which cost 48.25M$ @ 3.77. Wouldn't that be insider trading?


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## tigerbob (Nov 24, 2008)

NOBama said:


> Now that I think about it, maybe it was Paulson on that 12.8M share buy which cost 48.25M$ @ 3.77. Wouldn't that be insider trading?



I doubt it was Paulson (he'd have to be mad to try it), but I would be surprised if whoever it was had no knowledge of an impending federal safety net opening under Citi and yes, that would constitute IT.


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## editec (Nov 24, 2008)

What are they doing to do with that money?

Hoard it?

Yeah, that should drive up the price of their stock.

Gee this capitalism thing is easier than I thought.

I should have studied how to lose money in the banking business.

Beats welfare, that's for damned sure.


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## NOBama (Nov 24, 2008)

tigerbob said:


> I doubt it was Paulson (he'd have to be mad to try it)


 
Exactly. Conversely, I can't imagine some Hedge Fund manager buying a big lot like that without knowing SOMETHING.


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## DavidS (Nov 24, 2008)

NOBama said:


> Whoever bought the 12,800,200 shares of C at the closing bell on Friday will be a happy camper today. If it was me, I'd sell that pig today because, the entire 700B$ bailout allotment wouldn't be enough to save this POS, IMO.



You don't sell citigroup until the end of the day. It's up 60% in pre-market trading right now to $6/share. It could jump to $9-$10/share. Then you sell it because god knows what will happen tomorrow.


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## NOBama (Nov 24, 2008)

I'm already in. 1000 @ $5.85 this AM. I have no faith in this POS but, it's worth a small bet today.


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## DavidS (Nov 24, 2008)

NOBama said:


> I'm already in. 1000 @ $5.85 this AM. I have no faith in this POS but, it's worth a small bet today.





Good luck to us!


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## NOBama (Nov 24, 2008)

I got out @ 5.98. C is a POS.


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## Toro (Nov 24, 2008)

dilloduck said:


> and all this corporate bailout is fine with Obama ?



Considering that Bush, the GOP and Wall Street has done more to advance socialism in America than the socialists, then why wouldn't it be fine?

Stocks are cheap.


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## DavidS (Nov 24, 2008)

Damn. I really thought Citi was going to explode today.


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## dilloduck (Nov 24, 2008)

Toro said:


> Considering that Bush, the GOP and Wall Street has done more to advance socialism in America than the socialists, then why wouldn't it be fine?
> 
> Stocks are cheap.



Well he DID make a few claims about corporations not running America on his watch.


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## usmbtech (Nov 24, 2008)

DavidS said:


> Damn. I really thought Citi was going to explode today.



Are you still holding?


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## Paulie (Nov 24, 2008)

DavidS said:


> Damn. I really thought Citi was going to explode today.



Why?  Simply being injected with inflated cash and guaranteed by a worthless institution like the FDIC isn't exactly a bastion of fundamental greatness.

The market is WAY smarter than the government seems to think.


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## NOBama (Nov 24, 2008)

Paulitics said:


> The market is WAY smarter than the government seems to think.


 
... most of the time!

There was a pretty good chance of a herd mentality developing today but, by 11AM or so, I gave up on it. No regrets.

If shoots up to $10.00 tomorrow, I might change my mind on the regret thing but, I won't lose any sleep worrying about it tonight.


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## Paulie (Nov 24, 2008)

NOBama said:


> ... most of the time!
> 
> There was a pretty good chance of a herd mentality developing today but, by 11AM or so, I gave up on it. No regrets.
> 
> If shoots up to $10.00 tomorrow, I might change my mind on the regret thing but, I won't lose any sleep worrying about it tonight.



Bailouts are losing their luster.  I highly doubt that traders are going to fall for it any longer.

I'd be more inclined to stay FAR AWAY from anyone receiving one.


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## DavidS (Nov 24, 2008)

DanK said:


> Are you still holding?



Yes, but if it doesn't hit $9 by the end of the week or it drops below $5.50, I'm selling it.


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## DavidS (Nov 26, 2008)

NOBama said:


> I got out @ 5.98. C is a POS.



It's at $7.33 right now... up 20%. I'm staying in for the long haul.


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