Posted by dylan398 on 17th of Dec 2009 at 10:27 am
Dillution!! I'm curious as to how they can find people
with 20B laying around that they can't wait to buy C under 5 bucks
and no profits...I wish they would name the buyers of the
offering.
The number of shares is simple math and it had to have been
known as soon as Goldman announced they would pay back TARP that
the others would follow suit. Why the delay and why is the
selling accelerating at a rapid pace?
Shares of leading U.S. bank Citigroup Inc. (C) fell 7.8%, to
$3.18, in recent premarket activity Thursday morning as investors
expressed dismay at the low price the company was able to get for a
secondary share offering, as well as concern about the offering's
dilutive effect on shareholders. Adding to the sour tone around the
sale, which raised $20 billion that Citi will use to pay off the
government's TARP investment, the U.S. Treasury, which had planned
to sell some of its Citi stake, said it was delaying the sale
because of the weak pricing.
Posted by jcomptonod on 17th of Dec 2009 at 09:54 am
Sure, they just sold a huge amount of stock to further
dilute the shares and the government is still controlling a lot of
shares for another 90 days at least, before they unload them back
into the market. That's a whole lot of dilution.
c
Posted by poohnana on 17th of Dec 2009 at 09:47 am
Does anyone know why Citi (C) is down 7-8 %?
The dilution is brutal. I've
Posted by steever on 17th of Dec 2009 at 10:05 am
The dilution is brutal. I've heard Citi's shares outstanding are now 28 billion, up from 7 billion a couple of years ago.
Dillution!! I'm curious as to
Posted by dylan398 on 17th of Dec 2009 at 10:27 am
Dillution!! I'm curious as to how they can find people with 20B laying around that they can't wait to buy C under 5 bucks and no profits...I wish they would name the buyers of the offering.
Why the delayed reaction though?
Posted by kalinm on 17th of Dec 2009 at 10:12 am
The number of shares is simple math and it had to have been known as soon as Goldman announced they would pay back TARP that the others would follow suit. Why the delay and why is the selling accelerating at a rapid pace?
This should answer your question: Shares
Posted by steever on 17th of Dec 2009 at 10:25 am
This should answer your question:
Shares of leading U.S. bank Citigroup Inc. (C) fell 7.8%, to $3.18, in recent premarket activity Thursday morning as investors expressed dismay at the low price the company was able to get for a secondary share offering, as well as concern about the offering's dilutive effect on shareholders. Adding to the sour tone around the sale, which raised $20 billion that Citi will use to pay off the government's TARP investment, the U.S. Treasury, which had planned to sell some of its Citi stake, said it was delaying the sale because of the weak pricing.
Sure, they just sold a
Posted by jcomptonod on 17th of Dec 2009 at 09:54 am
Sure, they just sold a huge amount of stock to further dilute the shares and the government is still controlling a lot of shares for another 90 days at least, before they unload them back into the market. That's a whole lot of dilution.
C
Posted by Michael on 17th of Dec 2009 at 09:50 am
because they're actually insolvent?