Citigroup as you all know is trying their best to make up for the losses incurred in the sub prime crisis. With million watching their horrible stock prices almost plunging below $1, Citigroup is now planning to do a reverse stock split.
Lets first understand what is a reverse stock split ?
A reverse stock split reduces the number of a company's shares outstanding, but increases the value of its earnings per share. Ever after the reverse stock split, the market value of the shares remains the same. Citibank or Citigroup is doing the a reverse stock split in an effort to make their stock look more valuable if the share price is significantly low, like it was close to $1.
Immediately after the annoucement of a reverse stock split of citigroup shares, Citigroup shares rose by 10% in early trading.
Citigroup said all private holders of convertible preferred securities, with a total liquidation value of $12.5 billion, have agreed to the swap. The bank will also offer holders of non-convertible preferred and trust preferred securities to exchange their shares. The conversion price is $3.25 per share. Citigroup said it plans to launch the reverse stock split in early April.
If you currently hold citigroup shares or bought shares recently when they hit historically low stock prices, we strongly suggest you hold Citigroup. It has already seen the bottom and most likely would only see a fair or better price for the stock. According to economic indicators, Citigroup would be back in business by late 2009 or second quarter of 2010, we are expecting citigroup shares to trade in the range of $15-20 by late 2009.
Quick Tip:
Citigroup Citibank Shares plan Reverse Stock split
Submitted by Anonymous on Thu, 03/18/2010 - 16:18.
Fasten YOUR seat belt for citi WILL SEE $5, 6, 7 AND THEN TO THE MOON citi will go over $10 and beyond.
Pandit says $20 Billion that means $34 Actually it's closer to $27 per share if you do the math and divide the outstanding shares with earnings of 20 billion. Still not a bad return
When you look at the join announcement that came from FDIC, federal reserve and the treasury The main point of TARP announcement was not to rescue the banks, it was to let the world know that every tool that the treasury had in the bag was available for the banks in order to restore the confidence in US financial markets and "ALL" the regulators will stand behind the US financial system. CITI is the big part of the US financial system and they will not, I repeat, they will not allow it to fail. Common people this is so simple....Get in shut up and relax. CITI will head above $10...When who knows but it will not fail....Don't let the shorts scare you out of your shares. Shorts are wrong period. They want to repeat what Paulson did couple of years ago and they are just too late to the table. Going long is the only way on the "financial" stocks. CITI has the backing of the government with them holding shares or not and "ALL" and I repeat "ALL" the regulators and FDIC and Federal Reserve and treasury will be behind CITI 100% for good of USA.
Wrote by Adel Bahman
Country: BAHRAIN
abamirage@gmail.com
Submitted by Anonymous on Mon, 10/26/2009 - 06:52.
citi anticipact in asia region definitely had left the rest behind especilly both china & india is catching up,the share price will not move only if you can stop the history,6usd is nothing quick,dont be mislead by those anly..focus on unseen,dollar going south is placing us back into the data,deficit would be sharply low,who can stop that,8usd in a month,check me
Submitted by Anonymous on Sun, 10/18/2009 - 00:29.
I'm not an investor. However, I am responsible consumer. My credit score is excellent and I have not had a late payment since college (almost 20 years). I typically will carry a 2-5K balance for about 6 months of the year on my credit card. The bank is making some money off me. Today, Citicard sent me a letter saying they were raising my interest rate to 29.99% on purchases. I called and canceled the card. Are the people running this company smoking crack? I expect a large migration from their credit card services. I'm sure the good customers will leave. This company already took over $300 billion in tax payer money and people here are seriously buying their stock? This company's business practices stink and they deserve to fail. I was always told buy stock in companies who you would use. I would never use Citi for anything again. Get rid of your stocks and let this miserable company fail.
Submitted by Anonymous on Mon, 09/28/2009 - 06:13.
City will sell 60 mil more shares and then do the reverse spit. Take the money they make from the sale and pay off the tarp funds. Sort of a reverse tax on the investors. Remember AIG did a reverse spit and the stock doubled the next day. I say bring it on.
Submitted by Anonymous on Thu, 09/03/2009 - 05:29.
I am not an expert, but when someone wants me to give 25, 50 or 100 shares in exchange for one share of my stock. I got to be insane to agree. If you want to give me your 100 shares for my one. I'd go for that!
Submitted by Anonymous on Sat, 08/29/2009 - 10:47.
Citi has hit rock bottom and now the only way is up. I bought shares and plan on holding to it for at least 2/3 years. It's already $5.23 and will continue to clim with some hiccups on the way of course. Go for it.
Submitted by Anonymous on Thu, 08/27/2009 - 23:31.
i am very optimistic about citi. I have made some money with them and feel the stock is super cheap. I really dont know a lot about the reverse stock option, but if it makes me more money then by all means, reverse away. I plan on holding them for a while.
Submitted by Anonymous on Thu, 08/20/2009 - 16:19.
TARP is really a great plan, which will support its bottom and never limit its future rise. My citi becomes 3 times in price since my March buy. Thank US Gov. Believe? Citi will come back 10 and 20s as the eco really recovers without any stupid tricks of RSP. RSP is totally not needed.
Submitted by Anonymous on Mon, 07/27/2009 - 12:43.
I just want out of my Citi Stock.....as long as Pandit is there and until they repay TARP funds, this stock will stay in the toilet. A reverse stock split will only make Citi to appear to be in better shape than they are.....they'll be in the RED for a long time! NO CONFIDENCE IN THIS FINANCIAL INSTITUTION. ALSO, THEY SAID THE SPLIT WOULD COME AROUND APRIL AND IT'S AUGUST.......THEY'RE A BUNCH OF SCREW UPS!
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