AIG or C

[steelman]

I bought 100 shares of Citigroup a few months back when $15 a share seemed like a bargain since C had been $40-$50 a share forever. It was more to see what it could be in 3-5 years. Well, we know what has happened. I think it's now $1.5-$2.00, somewhere in there.

I would like to throw another $1000 bucks in something. AIG is around 50 cents. With the bailouts and our current Presidient, I am just wondering if anyone could give me some guidance or opinions on the better play out of the two. It sounds like the govt doesn't want AIG to go down because it's too big and too important. It sounds like it insures too many investments. This is money that I don't need for awhile.

All of you guys are HUGE and MM is definitely the man so any input would be greatly appreciated. Thanks.

[Lyehopper]

I have the answer....

I bought 100 shares of Citigroup a few months back when $15 a share seemed like a bargain since C had been $40-$50 a share forever. It was more to see what it could be in 3-5 years. Well, we know what has happened. I think it's now $1.5-$2.00, somewhere in there.

I would like to throw another $1000 bucks in something. AIG is around 50 cents. With the bailouts and our current Presidient, I am just wondering if anyone could give me some guidance or opinions on the better play out of the two. It sounds like the govt doesn't want AIG to go down because it's too big and too important. It sounds like it insures too many investments. This is money that I don't need for awhile.

All of you guys are HUGE and MM is definitely the man so any input would be greatly appreciated. Thanks.

Send that $grand$ on down here to me Steelman.... PM me and I'll give you my address. Your money will be gone either way, at least you can sleep well knowing that I had fun with it.

[avmood]

I bought C last friday at $2. I should have sold it on Monday when it rose 20%, but I guess I was being too greedy, and the price is now down to $1.5.

[ajc3388]

if your goal is to invest in bargains based on fundamentals in financials, i'd try to find one that isn't bedridden with problems. Primarily, in a market where everything is bad, its better to go for things that -are- affected that maybe shouldnt be. These maybe include SBUX, GE, and the like.

They're hurting too, but at least they aren't like catching a falling knife. actually. replace knife with grenade.

Now, if you want to try and play volatility on the financial stocks thats maybe a bit different. I personally wouldnt want to hold C or BAC or WFC or (especially) AIG for more than 3-4 days if that

[dojitrader]

Financial companies are very risk now. I would better invest my money else where.

[jiesen]

Send that $grand$ on down here to me Steelman.... PM me and I'll give you my address. Your money will be gone either way, at least you can sleep well knowing that I had fun with it.

I disagree. With the worldwide shortage of cheese, mice need a bailout now more than ever. Send the money to me post-haste.

[steelman]

Funny, well maybe not so funny thing is that I bought GE a couple months back at $18. I suppose I am looking for somehting to buy and hold for a few years. It seems like most here buy and sell which I am open to. It just seems that there has to be some money in either of those 2 in a few years.

[New-born baby]

I disagree. With the worldwide shortage of cheese, mice need a bailout now more than ever. Send the money to me post-haste.

Cheese? I thought you were on drugs. I mean, all that AMLN and LJPC stock . . . .lol

[skiracer]

my own feelings are that C is tradeable in this range. if you look at the chart it would drive you away from any long position. but technical analysis is not always the answer. my feelings are that the govt needs to keep C solvent and afloat. they are going to do that no matter what it takes. that being that they nationalize the bank thru the process of injecting govt capital into the bank. that dilutes common shareholder value and you cannot avoid that with govt injection of capital. there has been high distribution volume over the past year and last few days with several billion share days. that in itself if bigtime distribution. but on the other hand there has been interest because someone is buying the shares up and holding up the price to some degree. and this has been going on under terrible market conditions experiencing the same type of high volume distribution days.
The question remains as to whether or not the risk is worth the reward. if you're not broke and playing with leveraged funds C could be very cheap right now. they are a player in everything financial and when and if there is a bottom put in with the markets in general then the chance that C will appreciate is higher than the risk it will go lower. Will the markets find a bottom at these levels is the other question because owning C needs the markets along with some confidence in them in general to accompolish any gains.
i'm sure others could present a decent case for not buying C. at this point my position is one based strictly on the fact that i am feeling that the bottom is near, that the govt has to do something to build some confidence in our economy, and that they will do this because they must.
the third point is how you trade it. if you think it is cheap here and are looking for a long term hold then buy it and put it in a box and i think the chances of it going up higher than any entry at these levels of 1.30 to 1.60 are going to provide at least a double or triple over the next year or so. if, like myself, you are looking to capitalize over the short term then be prepared to be nimble with your entries and exits. this level is a good entry and almost any bounce up in the markets is going to present an opportunity. the stock is cheap in my estimation right here. if you feel that way then there are also some decent opportunities with options, specifically calls. i bought the stock at 1.40 and again yesterday at 1.20. i also own the June 09 $2.50 & June 09 $4 call options which i also feel present a decent opportunity.
again i dont advocate buying anything if you cannot afford it. trading with leveraged funds brings with it the pressure of not being able to lose the money and plus having to pay it back. it is easy to speculate either way as there is always two sides to every position. the difference being putting the cash where your feelings are. if you believe strongly that long is wrong then i say put the cash up and short it. but i see it as there being so much more room to go up than down from these levels.

[steelman]

All of that makes perfect sense. I appreciate your well thought our repsonse. It just seems like there are great opportunites now for small forutnes in 10 years. I have followed C as a company for the last 8 years but I have not followed AIG. I didn't know if AIG at 42 cents could be a better play since the govt will give them more money. I am not broke but I still work hard for my pay. Well, wait a minute.. I have a wife and 2 children..yes I am broke lol. I am 36 with a long way to go

[skiracer]

All of that makes perfect sense. I appreciate your well thought our repsonse. It just seems like there are great opportunites now for small forutnes in 10 years. I have followed C as a company for the last 8 years but I have not followed AIG. I didn't know if AIG at 42 cents could be a better play since the govt will give them more money. I am not broke but I still work hard for my pay. Well, wait a minute.. I have a wife and 2 children..yes I am broke lol. I am 36 with a long way to go

Im looking at it strictly short term with the stock and the options. but i think that at this price range a long term hold is not a bad position. with my short term trades i always place a 7% stop loss below my initial entry price. with long term holds that isnt necessary. wife and children come before trading.

[mrmarket]

Skiracer...why do you tempt me so??...I already own 10,000 shares!!!

[steelman]

MM, you are tempted??? I better get my order ready. I would love to buy meats and cheeses. I bought a 100 shares at 15. 1000 shares right now sounds a lot better.

[skiracer]

Skiracer...why do you tempt me so??...I already own 10,000 shares!!!

i bought 5000 shares at 1.40. it responded by going to 1.20 range. so i bought another 5000 shares around 1.22. im also holding 100 june 09 $4 calls @ .26 and another 50 june 09 $2.50 calls at .21. so im also involved. it seems to me to be a decent time to add and average down for those in at higher levels. i think im done for the time being. good luck with those 10,000 shares ernie. some would say we're nuts. im in to 0 if that be the case or as long as i can if it goes in the other direction.

[New-born baby]

I wish you all well. Financials is the first sector to recover in a recovery.