it could and you could also go to the riverboat and bet on black with the odds being 20/80 against you...if they are even that favorable. things have changed for the crappy banks since the fed has announced it is reevaluating the "too big to fail" mantra. also credit default swaps on citigroups debt have spiked up in recent days...not a good sign for their common equity since they were basically backed by the govt.
Well, it's already more than halfway back from the afterhours low yesterday at 76. Might not even take a week if the overall market stabilizes.
Is there any news on Wells Fargo? And that's when Uncle Sam pulls off the C-C-C-C-Combo breaker. /gamble
THey just gave 10 billion to BAC. I wonder how letting a bank with close 2 trillion in assets fail will help anyone. I think odds are more favorable than 20/80. I think I am going to start nibbling when it gets to 3.
I bought some BAC today at around 7.90. I'm just an amateur, but I like their solid P/E ratio, and I feel pretty comfortable about them weathering the storm in the long run.
I bought some of CS and UBS yesterday. Don't know why but the action on Euro banks seems interesting to me in response to US banks' failures. CS up today but UBS down... not sure I have enough reasoning to stay in either and might just wait for next opportunity.
I haven't seen their most recent report, but looking at Yahoo (ttm) and Forbes, 7.3 and 9.3 respectively. Both figures are some of the lowest in the last 5 years.
People have been watching Yahoo drop like a brick saying this for a while as their employees leave in droves. The general consensus has been that their best hope was Microsoft buying them in totality or at least their search business. Maybe the new CEO can turn them around, but my guess is that they will eventually sell some portion of themselves to Microsoft.
My bad, I was talking about BAC. I used Yahoo and Forbes to check their P/E ratio. Sorry for the confusion. I actually dabbled a little in YHOO around November and December. I pretty much broke even.
Well they may survive, but it won't be because they're good at doing what they're doing - they're looking for gummint/bailout money. As for P/E, how do you value companies that can't value themselves correctly? Hehe. It may be a good gamble though, since the gummint seems intent on bailing these flop banks out at every turn. In many cases they seem almost forced into doing it or suffer financial market meltdown. It's sickening.
That's odd. If they still made a net profit in all this mess, why were/are they in need of a bailout. Am I missing something?
Prince Alwaleed said that around $40 and $20 and $5... etc. etc. Buying C now is just as big a gamble as it has been since it was in the $30's and $40's when everyone was saying it's undervalued. That being said, why the hell not. I bought Worldcom stock at 6 cents and sold it at 29 cents once knowing it was a piece of crap stock but wanting to profit off a dead cat bounce - more power to ya! *EEK* : they report earnings tomorrow, too. Maybe it will be better than abysmal and the stock will go up.
Now they're talking about rumors of the government "nationalizing" Citi. Good grief. Citi is denying the rumors, however.
So the risk with Citi is that on Monday, the stock is at $0. Wouldn't be a bad idea to buy a put option on them at $2 or something, though it would nice if the Jan contracts expired next week instead of tomorrow.
