C - paying off TARP & other thoughts?

[yoyomama]

http://www.bloomberg.com/apps/news?pid=20601087&sid=aEuLqFrXSBGk&pos=1

So, in my short trading career I've had the biggest payday off the awful company C, back in April.

Emotions not included...forget politics & whether or not you hate that they got bailed out or any of that, this is strictly about making money off of trading their stock:

Any thoughts on getting back in? Surely the share pool/price is going to become diluted. It should climb after that, no? No chart reading, no anything, just seems like it should.

A couple of questions/comments...first there is TARP, then there is still the issue of the government unloading their 36% of the company's shares, and third there is the possible reverse split after that...right?

Theoretically you could get back in after the TARP payoff...then get hit with the gov selling or get in after the gov sells and get hit with the reverse split?

Thoughts anyone?

Less caffeine.

[g92069]

Yo, like you I also made a profit offf of C. Not a lot, 'cause I was banking on TARP repayment a few months ago, but enough to believe there is money to be made there.

Myself, because the only chart I can read is the pie chart on my Scott Trade account, I would wait. To me, Dilution is pollution. There will be a pop on the TARP news (there already is a small one brewing), however...there is the large government stake that still has to be sold. And the dilution. And the debt.

That being said, I have listened to how you trade some of your accounts, and with enough money, in a day trading method, there is still money to be made here. Is it worth the risk though? Watch, wait, jump in, jump out. That's my opinion.

Have fun and make lots of monety!

G

[wooish]

From looking at chart, it's currently in the oversold territory. If history repeats itself (which it did the past few times), this stock always goes back to around $5 and back down to around $3.8. I started my position today @ 3.77. Yes I could've waited and got it for $3.65 but this was only my first buy. I will place my second buy if it doesn't fall below 3.62 which is the 200MA in couple of days

[yoyomama]

Hey g92...yeah risk indeed.


I'm gonna get back in I think but they haven't actually done the first part of the deal yet...have they? It's definitely going lower IMO.

[dmk112]

C is a garbage stock, stay away look at some thing more quality if you're looking to play the financials maybe WFC or GS. FAS for that matter...

[yoyomama]

Welll in my defense....if I am to get back in, I'm waiting until it dies even further. It's gonna get propped up is my opinion.

[steelman]

Wouldn't it be great it it dropped down to a buck again!!! I will be in with the ranch if it does that again. I made up for all my losses with that one, last time. Rode C from $1.00 to $5.00 and AIG from .38 to $1.70. We will just have to keep an eye on it.

[mrmarket]

It's criminal what management did here. They diluted the crap out of the stock so that they could pay off the TARP and pay themselves.

[steelman]

C

Does anyone think that C will hit $4 soon?

Thanks,
Steel

[skiracer]

I traded C successfully on several occassions way back when it was at .70 also did real well with it but it has lost it's appeal to me with everything it has done of late. i have been a cardholder for years and last week i got a letter from them stating that they were initiating a $60 a year charge for the card but if you spent over $2400 a year with the card they would credit you back the $60. i called them immediately and told them i would be paying off the account balance which was nominal and that i wanted them to cancel the card. i had been a platimum card holder for 20 years or more and use the card not frequently but enough. i told them i thought they were nuts and that this was going to ruin that part of their business which i firmly believe to be true. anyway recently i heard that Carl Icahn, who it very smart and astute but a thief and robber baron and could care less about their customer base or anything else, is quietly acquiring shares in the company in what might be an attempt to gain control of the company. if he does im sure he would dismantle if and sell off the parts at what would probably be a big profit for him but zilch for the shareholders. what can you say, it's capitalism. anyway here are a chart of it's daily and it's weekly. they are self-explanatory. my own feelings are that i would stay away until it showed me the beef. here is the daily:



and here is the weekly: i don't see a thing that would prompt me to enter a position here.

[billyjoe]

Ski,
Just another example of a corporation out of touch with reality and their customers. If we all were getting million dollar bonuses that $60 fee wouldn't concern us either. Most of these companies self destruct if given enough time. Very few CEO's impress me.

------------billy

[steelman]

Thanks for the analysis Ski. I was thinking about some June $4 calls. Looking at the charts, it really hasn't had any big moves in the past 6 months. Maybe an "in the money" price at $3 would be better. Or like you said, maybe just find something else entirely. I did buy some shares back at $1 and sold for a profit. I suppose I am just running ideas and asking for feedback, still learning on this end.
Thanks,
Steel

[skiracer]

Thanks for the analysis Ski. I was thinking about some June $4 calls. Looking at the charts, it really hasn't had any big moves in the past 6 months. Maybe an "in the money" price at $3 would be better. Or like you said, maybe just find something else entirely. I did buy some shares back at $1 and sold for a profit. I suppose I am just running ideas and asking for feedback, still learning on this end.
Thanks,
Steel

Steel,
that was just what i saw on the charts and my opinion which doesn't mean that is what the stock is going to do or what you should do. it's all a learning experience and the more inquisitive people new to this are the more they will learn. feedback is what makes it all go around. never a problem. i love to put my two cents in.

[yoyomama]

The gov still hasn't sold their shares though...and that's to come, right?

[skiracer]

The gov still hasn't sold their shares though...and that's to come, right?

i'm not sure about that yo. and i have no idea of what they would put them on the market for but i would bet that it wouldn't be at a premium but somewhere below fair market value just to get out from under them and if that happened i bet the biggest buyer would be citi themselves which would put them in a good spot for accumulating their own shares at a very good price as opposed to any other type of stock purchasing on their part where they would have to pay fair market value. and you can bet that they won't be letting on any info as to when the govt is going to start unloading the shares. i think that is the one big factor in holding the price down and keeping people out right now. especially institutional monies.