Commentary On “Citigroup Instantly Becomes a $40 Stock”
February 21st, 2012 by admin
Citigroup ought to be ashamed of itself with their 10 to 1 reverse split. They only did this so the CEO can cook up some good looking numbers and start to collect a pay check again. Their idea of a $.01 cent dividend is pathetic as well.
The investors who bought this stock advice when it was low and stood by the company for the last two years are basically now getting the shaft.
My own prediction? This stock is going to tank and probably drop back down again. And, even if it does go up one or two points, people really aren’t going to gain that much. There is no upside potential to speak of left and no real dividend. A $.50 rise on 1000 shares is only $500. Now, if the stock had risen from $4.50 to $7 or $10 dollars that would have been a substantial rise in price and a substantial profit.
Citigroup is probably the biggest loser of the year with this move and the 10 for 1 reverse split is simply a Hail Mary pass designed to frantically prop up the stock.